Debt consolidation

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Please eli5 how debt consolidation works and how it affects your credit. is it a bad thing?

In: Economics

2 Answers

Anonymous 0 Comments

Some loans have higher interests rates than others, often if you consolidate the debt you pay a much lower interest rate on the loan, but it often needs to be secured against a high value item like a home, so if you default on the debt or miss lots of the payments you can lose the house.

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