Debt Consolidation

Put simply, debt consolidation is when you combine multiple debts into one single loan providing you one monthly payment. It is the process of refinancing your debts. This is typically accomplished by taking out a debt consolidation loan, usually a personal loan, that is used to pay off all your existing debts. However, many people have also used home equity loans and credit card balance transfer programs to consolidate their debts.
Once you’ve consolidated your debts, you’ll still owe the same total amount of your debt, but your monthly payment will be lower. This is because the loan has a fixed payment. In addition, a debt consolidation loan usually provides a lower interest rate, so you’ll end up paying less overall.
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