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At a time when the economy is still in recovery and finding a well-paying job is easier said than done, the results of this debt could be devastating.

Perhaps that’s one reason around 7 million borrowers are in default, according to the Consumer Financial Protection Bureau. Consolidating your student loans can be a great way to ease financial strain — and the stress that goes with it. There are repercussions to refinancing that you should know before you sign on the dotted line.

Money Girl explains the pros and cons of using personal loans to consolidate or pay off credit card debt.

You’ll find out the best places to apply for a personal loan and how consolidating affects your credit.

Interest rates work against us when we are holding bad debts, such as auto loans, credit card debt, department store debt, small business loans, and even college debt.

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There are two main types of personal loans: secured and unsecured.

Loans that can be consolidated include direct subsidized and unsubsidized loans, subsidized and unsubsidized Stafford loans, direct PLUS loans, SLS loans, Federal Perkins loans and Health Education Assistance loans, among others.

Private education loans are not eligible for consolidation.

But the unfortunate reality is that scores of people find themselves in significant personal and household debt by the age of 30. No matter how bad your current financial situation is, there is hope.

If you take the right steps today, you can still reach your financial goals and find true financial independence.