Consolidation loan
Cards & borrowingA loan used to combine multiple debts into one payment.
Overview
Consolidation can simplify payments and sometimes reduce interest.
It does not reduce debt unless the rate is lower and spending is controlled.
Why it matters
- It can make repayments easier to manage.
- It can reduce total interest if the rate is lower.
- It can extend repayment if not planned carefully.
FAQs
Does consolidation improve my credit score?
It can help if it leads to consistent on-time payments and lower utilisation.
Is consolidation always a good idea?
No. It depends on the rate, fees, and your repayment plan.
Related terms
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