What Is Debt Consolidation?
Debt consolidation means combining several debts into a single new loan or account, so that one payment replaces many. It is often done with a personal loan or a balance transfer card. Whether it lowers the total cost depends on the new interest rate, fees, and repayment term compared with the original debts.
What Changes and What Doesn't
Consolidation changes how debt is structured, not how much is owed. A longer term can reduce the monthly payment while increasing total interest paid.
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Debt Payoff Calculator
Compare the Snowball and Avalanche payoff strategies side by side.
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Loan Calculator (EMI)
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Credit Card Payoff Calculator
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🔗 Related Terms
More Loans & Credit Terms
- Amortization
- APR (Annual Percentage Rate)
- Auto Loan
- Balloon Payment
- Buy Now, Pay Later (BNPL)
- Cash Advance
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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.