Investor Glossary-debt consolidationInvestor Glossary-debt consolidationInvestor Glossary-debt consolidationInvestor Glossary-debt consolidationInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Debt Consolidation

The HTML to link to this page
 

Debt consolidation is the replacement of several small debts with one larger debt. There are several reasons for debt consolidation; a primary reason for debt consolidation is to restructure multiple high-interest debts into one lower-interest debt with a lower overall monthly payment. Another reason for debt consolidation is to extend the length of time of debt repayments with a new loan, thereby reducing the amount of the monthly payment. Debt consolidation can also be a way to turn variable-rate loans into a fixed rate loan. For some people the convenience of only having to service one loan as opposed to multiple loans is a sufficient reason to take out a debt consolidation loan. One of the most common sources for a low-interest debt consolidation loan is a second mortgage on a home or other real estate, although any new source of financing with a lower rate of interest than your combined current loans is a possible source of debt consolidation.



Rate this debt consolidation definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: Key Rate Duration, margin rate, stock split, irrevocable trust, required rate of return, 1031 exchange, debt service coverage, ex-dividend, ex-dividend date, covered put, 401a, average price per share, Zero Cost Collar, deferred tax, liquidity ratio, phantom income, reverse mortgage, current ratio, 1035 exchange, inflation, class C shares, balance sheet, per diem, diluted share, wholly-owned subsidiary, annual return, VIX, option premium, limit order, EBITDA, deferred revenue, stock market close, APR, in escrow, FICO score, command economy, implied volatility, open position, risk management, dividends payable, real GDP, 144a, FTSE, minority interest, LIBOR, cancelled check, labor relations, retained earnings, quality assurance


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use