Personal Finance
Debt consolidation, a loan to pay others, student loans, lower interest rate, secure fixed interest rate, Personal Finance, home finance, financial planning, home mortgage, credit card, credit repair, social security, economics
   
Main
Personal Finance
Financial Economics
Financial Planning
Financial Times
Personal finance
Investment
Equity Investment
Pension
401k
Social security
Insurance
Wealth
Mortgage
Credit Card
Debit Card
Credit Repair
Debt Consolidation
Economics
Economics
Home Economics
DEBT CONSOLIDATION
[What is Debt Consolidation]


Debt Consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan. Often, student loans are consolidated for all of the above reasons.

Sometimes, debt consolidation companies can discount the amount of the loan. When the debtor is in danger of bankruptcy, the debt consolidator will buy the loan at a discount. A prudent debtor can shop around for consolidators who will pass along some of the savings. Consolidation can affect the ability of the debtor to discharge debts in bankruptcy, so the decision to consolidate must be weighed carefully.

Debt consolidation is often advisable when someone is paying credit card debt. Credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Debtors with property such as a home or car may get a lower rate through a secured loan using their property as collateral.

This text from Wikipedia is licensed under the terms of the GNU Free Documentation License
This web site provides general information only, not legal advice. There is no guarantee that the information is accurate. You must read and agree to the Terms of Use before viewing this web site.

Copyright 2004 Personal-Finance WS

Personal Finance Map | Terms of Use | Privacy Policy