Debt consolidation is combining multiple high-interest debts into a single new debt with a lower interest rate and simpler payment. Common vehicles: balance-transfer credit cards (0% APR for 12-21 months), personal loans (5-15% APR), home equity loans (4-8% APR, but secured by your home), and 401(k) loans (the prime rate plus 1-2%). Consolidation simplifies bill management but doesn't fix the underlying spending issue — without behavioral change, the consolidated debt often grows back. Avoid debt management agencies that charge upfront fees; nonprofit credit counseling (NFCC-affiliated) is the legitimate option.
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ACH Transfer
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Auto Loan
An auto loan finances a vehicle purchase, with the car serving as collateral. Standard terms run 36-84 months;…
Automatic Bill Pay
Automatic bill pay is a service that pulls funds from your account on a scheduled date to pay…
Balance Transfer
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Bank Run
A bank run occurs when many depositors simultaneously withdraw their funds, fearing the bank will fail. Banks operate…
Debt Consolidation
August 22, 2026 · Aditya Gupta
Personal Finance
Related terms
ACH Transfer
ACH (Automated Clearing House) transfers move money electronically between US bank accounts via the ACH network — direct…
Adjustable-Rate Mortgage
An adjustable-rate mortgage (ARM) starts with a fixed introductory rate (typically 5, 7, or 10 years), then adjusts…
Auto Loan
An auto loan finances a vehicle purchase, with the car serving as collateral. Standard terms run 36-84 months;…
Automatic Bill Pay
Automatic bill pay is a service that pulls funds from your account on a scheduled date to pay…
Balance Transfer
A balance transfer moves credit card debt from a high-interest card to a card offering a 0% promotional…
Bank Run
A bank run occurs when many depositors simultaneously withdraw their funds, fearing the bank will fail. Banks operate…
