Lots of people ask me on a day to day basis, what is bill consolidation? For those not in the know, bill consolidation as you might have guessed is the act of consolidating your month to month bills into one single payment. This is also known as debt consolidation to most of the public. There are obviously numerous advantages to consolidating all of your monthly outgoings, particularly debt into one single payment. Whether you’re consolidating mortgage payments, personal loans or credit cards, there is always a massive saving to be made if you’re only paying one single figure.
In most cases, by consolidating, the figure you end up paying is significantly less than all of your other loans put together which can help your money stretch further each month. Not only that, by consolidating you’ll also end up making a huge saving on the amount of interest you’re paying too. It is well known that most of your credit card payments, particularly the minimum payment you make each month purely goes on paying off the interest you owe. If you clean your cards with a consolidating loan, the overall interest you pay month to month will be significantly lower.