loan-consolidation

Vocabulary Word

Definition

Think of 'loan consolidation' as house cleaning for your debts. It's when you combine all your different loans into one single loan. This can make managing your loans much easier and may even lower your monthly payments.

Examples in Different Contexts

For student loans, 'loan consolidation' allows graduates to merge their government and private student loans into one manageable loan. A financial advisor might say, 'Consolidating your student loans can make it easier to keep track of your payments and manage your finances.'

Practice Scenarios

Academics

Scenario:

Many students struggle with managing multiple student loans. It's important to consider all options available before proceeding with any one plan.

Response:

I agree. Loan consolidation seems like a good option. It can certainly simplify multiple repayments into one and might lower the monthly payments too.

Business

Scenario:

The interest is piling up from several short-term loans we took for the company. We need to consider better financial strategy.

Response:

Absolutely, perhaps we should explore loan consolidation to simplify our debt management and hopefully secure a lower interest rate.