Definition
A loan that combines multiple debts into one, simplifying payments and often reducing interest costs.
What to consider
- Look into consolidating multiple debts to simplify payments.
- Compare interest rates to ensure you’re saving money overall.
- Review how the new loan affects your monthly cash flow.
Real world scenarios
- Struggling with multiple high-interest credit cards, David took out a consolidation loan to merge his debts into one lower monthly payment.
Related terms
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