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Debt Consolidation

Debt Consolidation

The act of combining multiple debts (e.g., credit cards, student loans) and consolidating them into a new loan, with a potentially lower net interest rate. A consumer can consolidate multiple student loans through the process of student loan refinancing, or convert multiple credit card balances into one personal loan, which involves paying off the existing debts and then repaying the new loan based on the lender's terms and conditions.

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