Dangers of Debt Consolidating Loans – The Concealed Traps Home » Blog » Risks of Debt Consolidation Loans – The Hidden Traps The style behind a debt consolidation reduction loan is straightforward: you can get a unique personal bank loan with more favourable terms and make use of the income to settle numerous high rate of interest debts, like bank card debts. You reap the benefits of an individual payment per month and, ideally, get a reduced interest rate to be able to save cash and pay back financial obligation sooner. Nonetheless, you are already carrying, if not more if.