What Is Debt Consolidation?

Published 2026-03-26 · Updated 2026-03-26 · Loanmit Editorial Team

Combining multiple debts into one payment structure—often with a new installment loan.

Definition

Debt consolidation rolls multiple balances into a single loan or payment plan. The goal is simpler payments and, sometimes, lower cost— but outcomes depend on rates, fees, and behavior.

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