Debt consolidation is a process of combining debts into one loan or repayment plan. Debt consolidation can be done on your own, with a financial institution or through a counseling service. Student loans are often consolidated in order to secure a lower interest rate. Combining the balances of multiple loans into one single loan. Consolidating is often used as a strategy for reducing monthly payments by extending repayment terms and/or acquiring a lower interest rate for some or all of the loan balances.
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