This means that you are going to pay more money in interest on a debt consolidation FederatedFinancial loan than you are currently paying on each credit card. The combination of the high-interest rates and the length of time it takes to pay off the debt consolidation loan, make it a poor choice for debt consolidation. You can use your new loan to pay off the other loans or credit cards you have, but if you only plan to pay off one card, it would be easier to pay it off in full. Do not get in over your head by paying off just one card and then need to consolidate all your credit card debt with another consolidation loan.
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Another problem with a debt consolidation loan is that you cannot qualify for any type of financing when you are still under contract. You can still use all the money you make while having a loan. Many people are allowed to keep the amount they earn after the first payment, but cannot borrow any more money without approval from the creditor.
A lot of people are also unaware that the credit bureaus will report a debt consolidation loan as a larger amount than it really is. The amount is reported, not the actual amount paid out. The credit bureaus will report an amount higher than the actual amount that was owed.