 TITLE: What Is Debt Consolidation? CONTENT: What Are the Benefits of Debt Consolidation?\n--------------------------------------------\nDebt consolidation has several potential benefits:\n*   **Better interest rates**: If you have a credit card or loan with a steep interest rate—say 20%—a big chunk of your monthly payment is going toward interest rather than paying off your balance. Finding a debt consolidation loan or credit card with a lower interest rate can significantly lessen how much interest you pay over the life of the loan. In the case of a balance transfer credit card with an introductory offer, you can even pay 0% for a set amount of time. This can save you hundreds, or even thousands, of dollars in the long run.\n*   **Shorter term lengths**: When you consolidate your debt, you can also choose a shorter term length than what you originally had, allowing you to pay off your debt even faster.\n*   **Easier to manage**: If you have multiple debts all due at different times, you may have a hard time keeping track of payments, increasing the likelihood of making late payments. When you consolidate your debts into one account with one due date, it's much easier to manage and make on-time payments. Payment history is the most important component of your credit score, so if you have a track record of missing payments or making late payments, consolidating your debts and paying your bill on time can help give your credit a boost. END