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The process of combining
all outstanding debts in one loan account. For example, you may have an
existing loan with a balance of $2,500, a credit card balance of $1,000
and a store card balance of $500. These could all be consolidated into
one loan of $4,000. The purpose is usually to lower monthly repayments,
through either lower interest rates on the new loan, or lower repayments
from an extended repayment term, or both. |
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