Question 1

What is debt consolidation?

Accepted Answer

Debt consolidation combines multiple debts into a single loan with one monthly payment, often at a lower interest rate.

Question 2

When should I consider debt consolidation?

Accepted Answer

Consider debt consolidation if you can get a lower interest rate than your current debts and can afford the monthly payment.

Question 3

What types of debt can be consolidated?

Accepted Answer

Credit cards, personal loans, medical bills, and other unsecured debts can typically be consolidated.

Question 4

Will debt consolidation hurt my credit score?

Accepted Answer

Initially, it may cause a small dip, but over time it can improve your credit by reducing credit utilization and payment history.

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