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Debt Consolidation is the process of restructuring a set of currently outstanding debt into one loan. Loans such as credit card debt or car loans, Home Equity Line of Credit that carry a higher interest rate than the first lien mortgage can be paid off using debt consolidation loan. This allows borrowers to refinance existing mortgage and high-interest debt into one loan with one, potentially lower monthly payment.

Synonyms:
Debt Restructuring
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