Debt consolidation is the process of bundling a number of different debts into a single loan or credit card, often with a lower overall interest rate.
It can be a useful option if you’re managing a number of debts like a personal loan, a car loan, credit cards or perhaps store cards. By consolidating your debts you may only have to make one monthly repayment instead of several and you may only be dealing with one lender and one set of loan statements.
The biggest advantage of debt consolidation is potentially saving considerable money in interest charges and also tailoring the term to suit your cash flow.
This strategy is often used in conjunction with budgeting and cash flow planning