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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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