NEWSLETTERS
A debt consolidation loan is a financial tool that allows borrowers to combine multiple debts into a single loan with a fixed interest rate and structured repayment plan. This type of loan is often used to simplify payments, reduce overall interest costs, and make managing debt more manageable. Debt consolidation loans can be secured, requiring collateral such as a home or car, or unsecured, relying on the borrower's creditworthiness. They are commonly used to pay off high-interest credit card balances, medical bills, personal loans, and other unsecured debts. While consolidation can provide relief by lowering monthly payments and reducing financial stress, it’s essential to assess the loan terms carefully to ensure it offers a true benefit over existing debts.