Debt consolidation is the merging or combining of debts in to a single or lesser number of manageable payments. Banks use this term when referring to loans where they consolidate several debts in to one larger debt. Often such loans require some form of collateral and/or
co-signors.

Credit Counseling agencies refer to debt consolidation and debt management plans as one in the same. You have one place to pay (the credit counseling agency) and one payment to make per month or pay period (all funds for debts go to the agency for disbursement to creditors).

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What is a debt management plan?
What is debt consolidation?