Debt consolidation is a process of taking loan to pay many other loan. this is done to secure the lower interest rate, secure interest rate or for the convenience of servicing only one loan. Debt consolidation can simply be from a number of unsecured loans into another unsecured loan, but more often it involves a secured loan against an asset that serves as collateral, most commonly a house.
In simple words debt consolidation process of taking out a new loan to pay the existing loan with high interest.In general the term consolidate is to group the several stuffs together into one, and when we use this word with fiance it will mean that to group all the debts into a new loan.This will allow you to pay only one loan with lower interest rate and lower monthly payments instead of paying of many every month
Credit card debt consolidation allow you to transfer the fund or balance from credit card with high interest rate to cards with lower interest rate.
To take the advantage of a lower APR, many people use Credit card debt consolidation by transferring the balance of one credit card to another to save the money to pay against their debt. another use is to transfer the cash in on the reward points or special offers.
you can save money by consolidating credit cards debt onto single credit card with lower interest rate. we always advice to shop or request for lower interest rates
Consolidating credit card debt onto a single credit card with the lowest rate you can get may save you a great deal of money over time. We encourage everyone to always shop for and request lower interest rates. But if you happen to have an above average to excellent credit score, you’ll probably qualify for some cards that are specifically designed for transferring balances.Credit cards offer a lower APR on balance you are transferring and often include a low or interest rate in introductory period.
