what is debt consolidation

Debt consolidation is the process of taking out a new loan or credit card to pay off multiple existing debts. By consolidating debts, you can streamline your budget and potentially save money by obtaining more favorable payoff terms, such as a lower interest rate or lower monthly payments. Debt consolidation loans are typically unsecured personal loans with fixed interest rates and repayment terms, while balance-transfer credit cards offer a 0% APR for a limited time. Debt consolidation may not be the best option for everyone, and it's important to make sure your spending habits are in check and your credit score is in good shape before considering it.