What is debt consolidation?

Debt consolidation is a financial strategy that aims to simplify the repayment process for individuals burdened with multiple debts. It involves combining all outstanding debts, such as credit card balances, personal loans, and medical bills, into a single loan. By doing so, individuals can streamline their payments, often at a lower interest rate and with a longer repayment term. Debt consolidation services work with lenders to negotiate better terms, enabling individuals to manage their debts more efficiently and reduce the financial strain. This approach helps individuals clear their debts faster, improve their credit score, and regain financial stability. However, it's important to note that debt consolidation is not a solution to eliminate debt but rather a method to make it more manageable and structured.