Usually done in consultation with a counselor or loan officer, a consumer consolidates all of their debts into one loan or one repayment plan.
Taking multiple debt or credit lines and consolidating them into one new payoff plan. Frequently, this is a consolidation loan, provided to consolidate debts into one loan with one payment, typically shifting credit card debts to secured debt by refinancing a mortgage. It could also refer to a credit counseling or debt settlement program. Answer 2: You would need to use the assistance of a debt consolidator who can help you combine all your unsecured debts so that you make just one single monthly payment to your debt consolidator who uses this amount to make payments to your creditors. Debt consolidators will negotiate with your creditors for a reduction in interest fees, waiving of late payment fees, etc. Debt consolidators will help you understand your financial position and the steps that can be taken to reduce your financial liabilities. They can negotiate with your creditors in such a way that you wind up paying less every month to pay off your debts. If you need more help check the link below.