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Debt Consolidation is the process where you pay off multiple debts by taking a new loan or a Credit card, preferably at a lower interest rate. The main idea is to find a loan with better terms, like a lower interest rate so that you do not need to struggle with several monthly payments and can free yourself of debt faster and smoother. Consolidating credit card debt becomes vital as credit card balances have a tremendously high monthly interest.
If you are in a situation where paying off your debt seems impossible and even debt consolidation won’t help, you can consider debt negotiation or debt settlement. This is only recommended for people who are in serious financial difficulties.
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