Definition · Glossary
Debt consolidation
In plain English
Combining multiple debts into a single loan, usually to simplify repayments or reduce the overall interest rate. Not always cheaper — always compare the total amount repayable, not just the monthly payment.
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Example
You have a credit card at 24% APR and an overdraft at 19% APR. A consolidation loan at 8% APR may reduce total interest paid — but only if you don't extend the repayment period.