Debt Consolidation or Cash Out Loans
The combining of several unsecured debts into a single, new loan that is more favorable.
Debt consolidation involves taking out a new loan to pay off a number of other debts. The new loan may result in a lower interest rate, lower monthly payment or both.
Consumers can use debt consolidation as a tool to make it easier to get out of student loan debt, credit card debt and other types of debt that aren’t tied to an asset.