Debt Consolidation Definition
Debt consolidation means taking out a new loan to pay off several unsecured debts from credit cards, medical bills, personal loans, payday loans, etc. Debt Consolidation is like refinancing your mortgage – you take big loan and then pay off all your previous unsecured loans.
Why is debt consolidation important? Well, living with debt has ultimately become the American-way of life. Unfortunately, what many people do not understand is that living with debt normally comes with a rather hefty price tag. Individuals who owe more than what they can pay for are not only less healthy but also more stressed out and live an oppressed life.