Define consolidating credit card debt
Consumers can use debt consolidation as a tool to deal with student loan debt, credit card debt and other types of debt.
There are several ways consumers can lump debts into a single payment.
So instead of paying five bills, each with a different high interest rate, you pay just one bill that covers the payments for all of those debts.
There are two main goals with any debt consolidation plan: Debt consolidation also usually lowers your monthly payments, although not in all cases.
In general, letting outstanding debt linger in your financial portfolio is both risky and costly.
Each month that passes without paying off a debt is another month of accrued interest charges that you have to pay.
Consolidate Your Debt Now Debt consolidation is combining several unsecured debts — credit cards, medical bills, personal loans, payday loans, etc. Instead of having to write checks to 5–10 creditors every month, you consolidate bills into one payment, and write one check.
However, there are specific instruments called debt consolidation loans, offered by creditors as part of a plan to borrowers who have difficulty managing the number or size of their outstanding debts.
Creditors are willing to do this for several reasons – one of them being that it maximizes the likelihood of collecting from a debtor.
The information below is designed to help you understand what debt consolidation is and how it can help you regain and maintain financial control.
If you have any questions or want to explore options for consolidation, call us at In the simplest terms possible, debt consolidation refers to any financial process that rolls multiple unpaid debts into a single monthly payment.
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Debt consolidation means taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones.