Debt Consolidation
Also called: consolidation loan, consolidating debt
Debt consolidation rolls several debts into one loan with a single payment, ideally at a lower rate and with a fixed payoff date. It works when the new rate is genuinely lower and you stop using the cleared cards. It fails in two predictable ways: stretching the term so the monthly payment falls but total interest rises, and consolidating unsecured card debt into a home-secured loan, which converts a debt that could be settled into one that can cost you the house.