Understanding Debt Consolidation
Debt consolidation is the process of combining multiple debts into a single loan. This can be done through a personal loan, balance transfer credit card, or a debt management plan. The goal is typically to simplify repayments by making a single monthly payment instead of juggling several different ones. This can potentially lower your monthly payment, though it’s crucial to understand that this doesn’t necessarily mean you’ll pay less overall.
Lower Monthly Payments: A Key Attraction
One of the most appealing aspects of debt consolidation is the possibility of a reduced monthly payment. By consolidating your debts
