Debt Consolidation
Combining multiple debts into a single loan or account.
Detailed Description
Debt Consolidation
What is the main purpose of debt consolidation?
The main purpose is to streamline repayment by combining multiple debts into a single monthly payment, reducing stress and improving financial management.
What are some types of debt consolidation loans?
Types include personal loans, home equity loans, balance transfer credit cards, and debt management plans.
What are the benefits of debt consolidation?
Benefits include simplified payments, lower interest rates, improved cash flow, and potential credit score improvement.
What risks are associated with debt consolidation?
Risks include longer repayment terms, potential loss of secured assets, increased debt accumulation, and possible fees.
What eligibility requirements are typically needed for debt consolidation?
Eligibility often includes a good credit score, proof of income, a favorable debt-to-income ratio, and steady employment.