Debt consolidation

Combining several debts into one, ideally with a lower interest rate.

Debt consolidation means replacing several debts with one, often a personal loan or a balance transfer card. You make one payment instead of many.

It helps if the new rate is lower and you stop adding new debt. It can backfire if fees eat the savings, if a longer term means more interest overall, or if the cards that were paid off fill back up.