issued by a bank
or other financial institution
used to pay off existing debts
. The idea is to save money in the long run by reducing interest
paid. Also useful for closing credit card accounts.
Warning: When websearching for information on debt consolidation, many of the hits will be companies trying to convince you that they are the best choice for a loan.
First, investigate your options with a nonprofit group such as American Consumer Credit Counseling, available at: