What is Personal Debt Consolidation?
Personal debt consolidation is a strategy that is employed by individuals to bring all personal debt under one common umbrella and make a single monthly payment on that combined debt. This is in contrast to a debt reduction plan, which would focus primarily on arranging the monthly budget to expedite the payment of each of the outstanding debts. Consolidating debts is sometimes accomplished with the aid of family members or personal benefactors. More often, personal debt consolidation is achieved by working with one of the many debt consolidation companies available to consumers. It is possible to handle personal debt consolidation privately. This may involve obtaining a loan from relatives or others who are in a position to pay off all current debts and allow the debtor to repay the borrowed amount in installments. This arrangement may or may not include paying interest on the total amount of the loan. When a private loan is not possible, people often turn to loan agencies and finance
