Combining your laptop and TV loans – choosing a consolidation loan

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Written By Jeffrey Cole

Life’s unpredictable path sometimes lands us on rocky financial terrain. Imagine a situation where an unexpected event or necessary purchase arises and your savings aren’t enough to cover the cost. What do you do? For many, a loan becomes a beneficial solution. And if you happen to take multiple loans, then a consolidation loan is the best solution.

If you’re no stranger to taking loans, at times it can get too much. You have to remember to pay all of them separately which can cause some stress. It’s a tool that can bridge the gap between what you have and what you need.

So in this article we will describe an example when combining your laptop and TV loans can be a beneficial situation where a consolidation loan shines.

When multiple loans collide

It’s not uncommon to find oneself juggling multiple loans simultaneously. Let’s picture a scenario. 

You’ve just invested in a state-of-the-art computer to support your work-from-home requirements. As soon as you feel settled, your living room TV, your primary source of evening relaxation, decides to give out. It’s essential, so you get another loan for a new TV. 

Now, you’re servicing two loans almost simultaneously, each with its own interest rate and payment deadline. It’s easy to see how this can become a tangled web of financial commitments.

tv loan

Choose one monthly payment instead of multiple

In a world where money woes can compound (pun intended), sometimes the answer is, paradoxically, another loan. But wait, how does that make sense? 

Here’s the logic. If Loan A has a high-interest rate and Loan B is slightly more manageable, one might think of getting Loan C with an even lower interest rate to pay off Loan A. By doing so, you’re essentially replacing a high-cost debt with a more affordable one, which, if managed responsibly, can save money in the long run.

However, it is best to choose a credit consolidation if possible. It makes it easier to manage multiple loans because instead of many monthly payments for multiple credits, it’s just one. And it’s easier to focus on that one payment.

Credit consolidation demystified

Enter the hero of our story – Credit Consolidation. Think of it as a tool that bundles all your disparate loans into a single, more manageable loan. Instead of multiple interest rates, deadlines, and lenders, you’re now dealing with just one. 

The advantages are evident:

  • Simplicity – one loan, one payment, one interest rate. No juggling.
  • Potential cost savings – often, the consolidated loan has a lower interest rate than the average of your previous loans.
  • Improved credit score – with timely payments and fewer loans, your credit score can see a positive boost.
  • Stress reduction – keeping track of numerous loans can be mentally taxing. Consolidation eases that burden.

In the context of our earlier example, instead of separately managing a computer and a TV loan, you’d combine them into one consolidated loan, ideally with a favorable interest rate and manageable payment terms.

And if you want to learn more about the credit score, check out our article about Credit history – what it is and how it affects getting a loan first. 

consolidation loan

Best practices when considering credit consolidation

In the financial world, as in life, it’s not just about knowing which tools to use, but also about using them wisely. As credit consolidation emerges as a beacon of hope for those drowning in debt, it’s imperative to understand best practices that can maximize its benefits.

Here’s what to consider:

  • Shop around – don’t settle for the first consolidation service or loan you come across. Different lenders offer different terms. Find the one that best suits your needs.
  • Use financial counseling – consider seeking financial counseling before diving into consolidation. A financial counselor can provide a clear picture of your financial health and guide you in the right direction.
  • Budgeting – after consolidating, set up a strict budget. Ensure you’re living within your means and prioritizing the repayment of the consolidated loan.
  • Avoid accumulating more debt – be sure to resist the temptation to use newly freed-up credit. The objective is to reduce your debt, not accumulate more.

Embracing these best practices will not only enhance the benefits of credit consolidation but also pave the way for sound financial habits. Remember, credit consolidation is not just about simplifying debts – it’s about setting a foundation for a more stable and secure financial future.


In conclusion, we must admit that life throws financial curveballs, and loans can be a safety net. However, multiple loans can turn that net into a trap. Credit consolidation is a strategy that offers an escape by simplifying your financial obligations. 

And while it’s essential to approach consolidation with a clear understanding and responsible behavior, when used judiciously, it can be a lifeline in navigating the turbulent waters of personal finance.