What is a debt consolidation loan
A loan obtained to pay off multiple other loans.
A debt consolidation loan is a single loan that pays off multiple existing debts, helping you lower your monthly payments over a longer repayment schedule.
Such a loan can include all your existing debts (e.g. credit card, loans, unpaid bills, etc). A debt consolidation loans will often result in lower interest rates on your outstanding debt.
See also
- Reduce your debt payments
- Find out how we can help you reduce your debt payments.
- Debt management plans (DMP)
- What is a debt management plan (DMP)