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Borrowers often have not only one loan to pay off, often there are several loans. There are the discretionary credit, the installment loan for the new bedroom and the car loan. Under certain circumstances, a mortgage financing is added. You quickly lose track of the monthly installments and the related interest payments. 

All credit providers charge different interest rates, usually the terms are not identical, as it requires either a meticulous bookkeeping or the borrower threatens to lose track. With the loan consolidation, the borrower should again get a better overview of his financial obligations.

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