Debt consolidation refers by combining all small debts (credit cards) into a single monthly payment. By making payments to all your creditors individually, you put all your debts into a unique, one repayment plan. At the same time, the magic is to reduce or eliminate the interest charges applied to all your owed money. This gives you the chance to get out of debt more comfortable and faster because more of each payment you make will go to the principal amount that you owed than paying interest.
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