Debt Consolidation
Combining several debts into a single loan, ideally with a lower interest rate and one monthly payment.
Debt consolidation rolls multiple debts, such as credit cards, overdrafts, and small loans, into one new loan with a single payment. The goal is a lower overall interest rate, a simpler schedule, and faster payoff. It works best when the new rate is genuinely lower and you avoid running the old balances back up. Extending the term to shrink the payment can increase total interest paid, so the math matters. Assetli's debt overview helps you see all your obligations in one place before deciding.
Example
You combine three credit cards totaling $12,000 at 22% into one loan at 9%, cutting your interest sharply and replacing three payments with one.
Try in Assetli
Read more
Related terms
Debt-to-Income Ratio
The percentage of your gross monthly income that goes toward debt payments, used by lenders to assess borrowing capacity.
APR (Annual Percentage Rate)
The annualized cost of borrowing expressed as a percentage, including interest and mandatory fees, used to compare loan products.
Interest Rate
The percentage charged on borrowed money or earned on deposited/invested money, expressed as an annual rate.
Creditworthiness
A lender's assessment of how likely you are to repay borrowed money, based on income, debts, and payment history.
Explore more terms
Revolving Credit
A flexible credit line, like a credit card, that you can repeatedly borrow from and repay up to a set limit.
Wage Garnishment (Attachment of Earnings)
A legal process where part of your salary is withheld to repay a debt, leaving a protected minimum.
Insolvency (Debt Relief)
A legal process for people who cannot repay their debts, leading to structured repayment or discharge.
Transaction Categorization
The process of classifying financial transactions into categories like groceries, rent, or entertainment to analyze spending patterns.
Recurring Transactions
Transactions that repeat at regular intervals — subscriptions, loan payments, salary deposits — essential for predicting future cash flow.
Bank Synchronization
The automated process of importing transactions from bank accounts into a financial management tool, either through API connections or file imports.