Card consolidating consolidation credit credit debt loan


27-Nov-2017 07:19

Debt consolidation means taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones.

In effect, multiple debts are combined into a single, larger piece of debt, usually with more favorable pay-off terms: a lower interest rate, lower monthly payment or both.

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A consolidation loan may also be kind to your credit score down the road.

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.



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