Transactions within a group tend to "cancel out". If you paid this month's rent, and your roommate had paid the previous month's rent, both the balances cancel out. When you consolidate debts within Buxfer groups, you reduce occasions where you need to pay your friend in cash, or using other (costly) ways of money transfer. With larger groups, this becomes even more effective.

Consolidated groups help reduce the number of debts/loans you need to keep track of. If you have a 5-member group, Buxfer lets you track only 1 balance with the group as a whole, instead of tracking 5 balances with individual group members. Learn more about consolidation.

You can enter transactions involving all group members by simply selecting the group name (instead of having to enter all member email addresses)