These increasingly popular loans can save you thousands of dollars in interest — or double your debt. Here’s when they work.

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Personal loans are increasingly being used to consolidate high-interest debt, offering potential savings for borrowers with favorable terms. However, they carry risks such as higher interest rates or fees that could exacerbate financial burdens if mismanaged. The effectiveness depends on factors like creditworthiness, repayment timelines, and market interest rates. This trend highlights the dual-edged nature of debt restructuring tools in the global financial landscape.