The term debt consolidation refers to the act of taking out a new loan to pay
off other debts. Multiple debts are combined into a single, larger piece of debt, usually with a longer loan term due to the loan being higher risk as most of these loans are unsecured. This could mean you are paying more in the long run.

Also consider by rolling over existing loans into a brand new one, there may initially be a negative impact on your credit score. That’s because credit scores favor longer-standing debts with longer, more-consistent payment histories.