Debt consolidation is an umbrella term for combining various debts into a single one. This can be done through a loan, using a balance transfer credit card, or through a specialized agency, among other options. The goal is to make the new debt more manageable by having one lender, one monthly payment and one interest rate.
How does debt consolidation work?
Debt consolidation gathers debt balances from multiple sources and puts it in one place, simplifying your payoff strategy. You can develop a debt consolidation plan on your own, through a financial institution, a credit counseling agency, or a debt relief company.
Regardless of the solution you choose, the goal is for the new debt to have a lower interest rate than the ones you origin…
Read the full article at: https://money.yahoo.com/debt-consolidation-does-181028971.html
