Personal Finance

Debt Consolidation

Definition

What is Debt Consolidation?

Combining several debts into one new facility, ideally with better terms or easier management.

Example in practice

Three expensive loans are replaced with one lower-rate loan.

Keep learning

Money set aside rather than spent, often for emergencies or future goals.

Liquid savings reserved for unexpected expenses or income disruption.

Total assets minus total liabilities.

Annual portfolio withdrawals divided by the portfolio's starting or current value.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.