When people consolidate a debt they usually take a loan to pay many other debts they have. This will allow the person to consolidate the money you owe into a single payment
What are the Pros of a Debt Consolidation?
The debt consolidation will be helpful when you run up all your credit cards when you are in business or in school. Debt consolidation will also allow you to turn the high interest debts into a single and manageable payment and these high interest loans or installment loans will be the student loans and car loans and many others.
When you make the payments in time properly, you can avoid many things like late fees and charges for late payments, extra charges and most importantly, bad credit. Bad credit score is inevitable when you don’t pay the debts on time regularly.