Debt consolidation is type of financing where a single loan is taken to pay for multiple outstanding loans of an individual. The advantages of a debt consolidation are the following:
1. Instead of managing multiple loans like credit card bills, student loans, personal loans, car loans and mortgage, the borrower can just focus on one loan, which is far easier to manage.
2. One monthly repayment is required. No more multiple transactions.
3. Save more money by getting a lower interest rate.
4. Ability to extend the your monthly repayments by getting a longer term
5. Clear idea about the exact date when all your debt will be completely paid
6. Chance to improve your credit score
7. No multiple fees and interests
8. You can escape the lenders that you have bad experience with
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