D
Loans
Debt Consolidation
The process of combining multiple debts into a single loan with one monthly repayment, often at a lower overall interest rate. Debt consolidation simplifies your finances and can reduce your total monthly payments, but it may extend the repayment period.
Usage Examples
"He consolidated three store accounts and a credit card into one personal loan at a lower interest rate."
"Debt consolidation reduced his monthly payments from R4,500 across five debts to R3,200 for one loan."
"Be careful with debt consolidation — if you keep using the accounts you paid off, you could end up deeper in debt."