consolidation loan

Also found in: Dictionary, Wikipedia.
Related to consolidation loan: Debt consolidation

Consolidation loan

A loan that is used to combine and finance payments on other loans.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Borrowers who opt for a federal consolidation loan can choose from various repayment options to pay their new consolidation loan, including income-based repayment, extended repayment, and graduated repayment.
Pettus allegedly provided a forged W2 income tax form that inflated his annual income nearly $100,000, while attempting to obtain a debt consolidation loan, the DA's office said.
An iHELP Consolidation loan offers the option to release a cosigner after 24 months of consecutive on time payments.
Raju, however, points out that with credit card debts racking up 40 to 50 per cent per annum in interest liability, it may be worth pursuing a consolidation loan. "If you take a personal loan, the annual interest rate is likely going to be between six to nine per cent," he says.
"We have come up with a product at a much lesser rate of interest but it is a consolidation loan where we consolidate the debt and pay off the other debtors.
Trading Standards officers advise people to look closely at the duration of the consolidation loan and the total amount payable.
They visited the bank for a second time to discuss the position and the bank's lending officer arranged a second consolidation loan.
With that said, Justin Pritchard, author of The Everything Improve Your Credit Book (Adams Media; $14.95), suggests, "When looking for a consolidation loan, tap into your existing bank and credit union relationships.
One in four people who take out a debt consolidation loan go on to run up more debts, a survey claimed today.
He adds: "When I'd asked Barclays where I bank if they could give me a consolidation loan, they offered me a rate of 22.5pc, so I was glad I shopped around."
At the same time, around 3m people have taken out a debt consolidation loan in a bid to get on top of their borrowings.

Full browser ?