Which of the following is NOT a benefit of loan consolidation?

Loan consolidation typically offers several advantages to borrowers, including simplifying payment management, extending repayment terms, and potentially lowering interest rates. However, one common aspect that is often considered a disadvantage is the likelihood of higher monthly payments, especially if the borrower consolidates into a product with a shorter repayment term or retains a high principal amount.

When loans are consolidated, borrowers usually benefit from having a single payment to manage, which reduces the complexity of tracking multiple loans. Additionally, loan consolidation might allow for extended repayment terms, thereby reducing monthly payment amounts even if the total interest paid over the life of the loan may increase. Furthermore, borrowers may access lower interest rates through consolidation, particularly if they have a good credit score or if market rates have declined since the original loans were taken out.

Therefore, higher monthly payments do not align with the general benefits that individuals seek when choosing loan consolidation, making this the correct answer to identify as NOT a benefit of the process.