consolidation loan

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Related to Consolidation Loans: Debt consolidation

Consolidation loan

A loan that is used to combine and finance payments on other loans.

Consolidation Loan

A loan that pays off two or more loans. A consolidation loan often comes with a lower monthly payment and/or interest rate than the previous loans, as well as a longer repayment period. The process is usually called debt consolidation, and is often used for student loans.

consolidation loan

A new loan that pays off two or more existing loans or indebtednesses, usually resulting in lower payments.Home equity lines of credit are often marketed as consolidation loans, urging consumers to pay off high-interest-rate credit cards and automotive debt for lower-interest-rate, tax-deductible, mortgage debt.While the practice does reduce monthly payments significantly, it replaces relatively short term debt with long-term debt and results in higher total interest payments over time.

References in periodicals archive ?
According to the National Endowment for Financial Education in the United States, consolidation loans typically have a longer term, so borrowers can have affordable monthly payments.
It is believed that the central bank is in discussions with UAE Banks Federation over a ban on banks offering consolidation loans with repayment schedules that extend beyond 48 months for citizens.
If you're juggling multiple debts in the form of credit cards, personal loans and overdrafts, it may be simpler to consolidate your debts into one with a debt consolidation loan.
However, alarming new research by the price comparison website revealed 62 per cent of people with consolidation loans had borrowed more money.
Despite recognizing the benefits of consolidation loans, Berkley is still unsure whether she will combine her loans in hopes of a lower rate.
Providing consolidation loans exclusively through FDLP in fiscal year 2006 could yield estimated budgetary cost savings of about $3.
Then get a consolidation loan, buy a new car, have a two week family holiday and make one easy payment of pounds 1,000 a month for your working life or we'll take your house off you and send your children up chimneys.
The Office of Fair Trading announced last night it was launching a study into the rapidly growing debt consolidation industry, amid concerns that consumers often do not understand what they are signing up to when they take out a debt consolidation loan.
Debt consolidation loans are thought to account for around 60 per cent of all second mortgages, a sector which is growing much faster than the rest of the consumer credit market, and is worth around pounds 8.
Federal Consolidation Loans, and SLS (Supplemental Loans for Students) to remove the default status of their loans and repair their credit history if nine (9).

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