How Does Debt Consolidation Work?
Published 2026-03-26 · Updated 2026-03-26 · Loanmit Editorial Team
Payoff mechanics, lender options, and why a lower payment is not always a win.
Typical Flow
You qualify for a new loan, pay existing unsecured balances, then repay the new loan on a fixed schedule. Use the debt consolidation calculator for illustration only.