06/02/2026
As credit specialists, a question we’re often asked is:
What is debt consolidation?
An excellent question, indeed… 🤔
To put it simply, debt consolidation is when you take out a loan to pay off pre-existing debts. The different debts are combined into one single debt amount.
Debt consolidation usually entails better payment terms — such as lower monthly payments or lower interest rates.
We all want to get our debts paid off as soon as possible, so it’s important to remember that debt consolidation typically involves a longer payment schedule.
While those minimum payments may be lower, you may also get stuck with higher interest rates — which means paying more in the long run.
So if you think debt consolidation is the right option for you, just make sure to do it with discretion!
We hope you found this helpful! And if you’d like to learn more about debt consolidation, or the work we do on a daily basis, just leave us a comment down below or send us an email :)