What is the debt consolidation plan?

Debt consolidation program refers to the combining or consolidating of the various loans that you might have into a single payment. The consolidation plan is usually initiated by a credit counseling organization or company. You are required to make a single payment to the company which then forwards it to different creditors.

Debt consolidation helps you by way of combining your outstanding balances in one place and you keep paying a monthly installment for the same. When looking for the best debt consolidation plan, you must look at the interest rate charged by the bank so that you do not end up paying more.