Debt consolidation loans are often available for sums between $5,000 and $80,000, with up to seven years to pay off the loan. You will usually need to have a steady income to be eligible.

The main advantages of debt consolidation on a personal loan are the potential savings to be made from a lower interest rate and lower monthly repayments.  Having a single monthly repayment can also make it easier for you to manage your finances. 

If considering taking out a debt consolidation loan, you should shop around, be sure to use a reputable lender, and calculate all the costs and benefits.  Early repayment penalties on your existing debts, or a substantial arrangement fee on the new loan, for example, might cancel out the savings from a lower interest rate. You should take into account the lifetime cost of the loan, compared with your existing debts.  Be especially wary of securing a loan against your home or other assets, since this will put you and family into a very vulnerable position.

Try to repay as much as possible of your debt consolidation loan each month, otherwise you risk turning your short-term debt into long-term debt and paying more interest over time.  Most importantly, resist the temptation to re-use the credit you have freed up, preferably by cutting up your cards or reducing the credit limit on them to a more affordable level.

Before taking out a personal loan, investigate whether other methods of debt consolidation can save you more money.  If you have equity in your home, you might be able to consolidate your debts into your existing home loan and benefit from an even lower interest rate.  Alternatively, if you expect to be able to pay off your debts fairly soon, transferring the balances to a credit card  with an introductory interest-free or low-interest period on balance transfers might also save you more money.