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What is debt consolidation?

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Debt is something that is owed. In centuries past, debt could be repaid with livestock or produce, trading a chicken for hard labor or a bushel of grain for services. However, in today’s money dominated world, debt almost always refers to financial debt. This financial debt usually is attached to an interest rate which can increase the total amount of debt over time if the debt is not paid off in a timely manner. Debt consolidation is the act of joining several loans into one loan. Debt consolidation, which can also be known as consolidation loans, is an option which offers a possible lower interest rate and the increased peace of mind of only having one loan as opposed to many. Debt consolidation can also offer a lower monthly payment as well as a longer repayment period. Debt consolidation is often a source of freedom for many people who are under the heavy burden of financial debt that seems never ending. It can help to lift some of the anxiety and apprehension that comes with financial debt.

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