What is Debt Consolidation? Essentially, debt consolidation. Involves taking out one loan to pay for all of, or a chunk of, your current debts. Of course, you may be thinking what is the point of taking out another loan just to pay off my other loans? This is a fair question to ask. Overall, debt consolidation can also have a negative impact on your overall credit score. But it is nothing that you cannot build back up over time. Just be sure to make timely payments on y.

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