Debt Consolidation is combining the debts you owe into a single monthly payment. The most common use for this is student loan consolidation. This allows the graduate to combine qualifying loans into one loan with one interest rate.

This can be done with other types of debt, and is usually done with a debt consolidation loan. This loan pays off all your other debts so that you can just make one payment each month. You can discuss your financial situation with a credit counselor at Money Management International if you would like additional advice. Use caution when looking for debt consolidation options (learn more here).

 

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