Debt consolidation solutions allow you to combine multiple outstanding debts into one simplified monthly payment. This process typically involves taking out a new loan — often with a lower interest rate or a longer repayment period — to pay off your existing high-interest debts. You’ll then focus on repaying the new loan through a single, manageable installment each month.

While you can choose which debts to consolidate, not all debts qualify. Generally, secured debts like mortgages and car loans cannot be included in a debt consolidation loan. A crucial first step is listing all your outstanding debts to determine which ones are eligible and which ones you wish to consolidate.

Many individuals opt for debt consolidation to regain better control over their finances. Managing just one payment with a consistent due date and interest rate is far easier than juggling multiple payments and deadlines.

However, qualifying for a debt consolidation loan comes with strict requirements. You typically need a strong credit score and, in many cases, assets of equivalent value to the loan to offer as collateral.

At Krimson Mortgages, we recommend working closely with a mortgage professional who can guide you through the process, help you decide which debts to consolidate, and provide a detailed savings estimate — ensuring you make the smartest financial decision for your future.