I owe a lot on my credit card, have other loans too and can barely afford the minimum monthly payments,” writes a reader. “My friends say I should try to consolidate my debts so I’m paying back just one creditor, but I’m not sure if this will work.”
Debt consolidation is when you combine all your debt and pay it off at the same time, having just this one loan to pay back.
People who are struggling to pay back various loans and can’t make head or tail of who they owe money to could consider debt consolidation but it should never be used as a means of putting off paying what you owe so you can incur more debt.
