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Myth: Debt consolidation saves interest, and there’s one smaller payment.

But most of the time, after someone consolidates their debt, the debt grows back. They still don’t have a game plan to pay cash and spend less.

Debt is simply the amount of money or property that one party owes to another party. The following are a few articles that describe the differences between the two. To begin with, many transactions only happen through the use of credit – whether revolving credit, secured and unsecured loans or other lines.

The parties can be individuals, corporations, municipalities or even governments. Using debt allows people to purchase items that would otherwise be out of reach.

Debt consolidation can be a useful strategy in some situations but for many it can involve extra costs, and potentially makes a difficult situation much worse.

That's why it's best to get expert debt advice before taking out a consolidation loan.

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