What is meant by the phrase consolidating credit card debt
Consolidated credit, debt consolidation, debt management – you've likely seen all of these terms and more while reading about merging all of your bills into one simple monthly payment.Sometimes these terms have different meanings, but other times they're used interchangeably.And depending on the context, these terms can indeed have similar meanings.
This means more debt that could make an escalating credit problem even worse.This defeats the purpose of getting a loan to consolidate your credit.By the time you're considering getting a loan for consolidated credit, bill collectors are usually calling, and your credit scores are too low to secure a loan at a reasonable interest rate.So when you finally pay off the credit consolidation loan, you've probably spent more money on the principal and interest than if you had paid the original balances separately.
So in this case, debt management and consolidated credit are not the same.
While your intent of borrowing money to manage the debt is well-meaning, this is like applying a small bandage to a growing wound.