Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others.[1] This commonly refers to a personal finance process of individuals addressing high consumer debt, but occasionally it can also refer to a country's fiscal approach to consolidate corporate debt or government debt.[2] The process can secure a lower overall interest rate to the entire debt load and provide the convenience of servicing only one loan or debt.[3] Debt consolidation is sometimes offered by loan sharks,[4] who charge clients exorbitant interest rates.[5] Further regulation has been discussed as a result.[6][7][8]
- ^ Fontinelle, Amy (November 26, 2014). "Alternatives To Balance Transfers". Investopia. Retrieved 21 December 2014.
- ^ Global risk insights (December 20, 2014). "China's Interest Rate Cut Not as Reformist As It Seems". Seeking Alpha. Retrieved 21 December 2014.
- ^ Joan Ryan (14 January 2011). Personal Financial Literacy. Cengage Learning. pp. 292–. ISBN 978-0-8400-5829-4. Retrieved 13 December 2011.
- ^ "Debt consolidation". www.nationaldebtline.org. Retrieved 2024-08-27.
- ^ "Loan shark debt". www.stepchange.org. Retrieved 2024-08-27.
- ^ "Long-Term Debt Requirements for Large Bank Holding Companies, Certain Intermediate Holding Companies of Foreign Banking Organizations, and Large Insured Depository Institutions". www.federalregister.gov. Retrieved 2024-08-27.
- ^ "Code of Federal Regulations". www.fiscal.treasury.gov. Retrieved 2024-08-27.
- ^ "Agencies request comment on proposed rule to require large banks to maintain long-term debt to improve financial stability and resolution". www.federalreserve.gov. Retrieved 2024-08-27.