Debt consolidation is the process of combining bills from various institutions or individuals and placing those into a single loan, which consolidates interest rates into a single bill. Consider debt consolidation as an option to help organize debt relief with advice from a licensed financial planner in this free video on personal finance.
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Hi, my name is Bill Rae. I'm with HBW of Florida. I've been in the finance field for well over twenty years, and I've helped many people out of their own situations. Today we're going to talk about debt consolidation. First of all, what is debt consolidation? In general terms, debt consolidation means taking money that you owe to multiple people or multiple institutes and putting it together into a single loan. This is generally what we call a debt consolidation loan. Good example of this over the past years has been many people refinancing their home, taking equity out of their home to pay off things such as car loans, personal lines of credit, maybe some installment type loans. Or using the money to invest. Whatever, the ultimate result is that instrument that you now owe money on, that you're going to be making monthly payments to, is a debt consolidation loan. You need to be careful about debt consolidation loans. There can be tax consequences to 'em. Also, some people like to get a little extra forgiveness when they do these type of things. Again, be careful. There could be tax consequences. As in always, understand what it is that you're actually signing. Understand the terms, understand what the costs are, and, as always, I recommend, seek outside counsel whenever possible. Talk to companies such as ours. We're here to help you. My name is Bill Rae. I'm with HBW of Florida, and we're helping you build wealth.