debt-consolidation

Vocabulary Word

Definition

'Debt-consolidation' is a way to make dealing with debt easier. It involves you combining multiple debts into one, so you only have one payment to worry about, often with a lower interest rate.

Examples in Different Contexts

In credit counseling, 'debt-consolidation' is a strategy advised to manage and pay off debts more efficiently. A credit counselor might explain, 'By consolidating your debts, you can focus on a single payment and track your progress more easily.'

Practice Scenarios

Business

Scenario:

We've accrued quite a few high interest loans, perhaps we need to reevaluate our debt management strategy.

Response:

You're right, we can consider debt consolidation to manage these high interest loans more effectively.

Banking

Scenario:

You have several outstanding loans. It may be beneficial to consider simplifying your repayment structure.

Response:

I like the idea of a debt consolidation loan to simplify my repayments and possibly save in the long term.