Debt Consolidation
✓ Last verified 14 Sep 2026
The short version
Debt consolidation combines multiple debts - often several high-rate credit cards - into a single loan, ideally at a lower blended rate, simplifying repayment into one EMI instead of several separate due dates and rates.
Rather than juggling several credit card balances or loans with different rates and due dates, a consolidation loan pays them all off at once and replaces them with a single loan - ideally at a lower overall interest rate than the average of what was being paid before, and definitely simpler to track. The real risk: if old credit cards get used again after being paid off via consolidation, the result can be the original debt plus the new consolidation loan - the strategy only works if the underlying spending habits that created the debt are addressed alongside it.
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