How Debt Consolidation Loans Function
IN THIS LESSON
- A debt consolidation loan’s purpose is to consolidate those numerous loans into one manageable account, with a lower interest rate than the high interest credit card companies charge.
- There are two main reasons consumers consolidate debt: to reduce the number of payments they make each month and to save money on interest over the life of their loans.
- Instead of paying several different credit cards or other high-interest bills, debt consolidation allows you to put all those debts into one place, leaving you with only one monthly payment, simplifying your debt repayment.