debt consolidation

[ det kuhn-sol-i-dey-shuhn ]

noun

, Finance.

1. the combining of several smaller loans into a single new loan in order to obtain better terms, as a lower interest rate.

Word History and Origins

Origin of debt consolidation¹

First recorded in 1925–30

Example Sentences

Seventy-five percent of borrowers use their Lending Club financing for debt consolidation or credit-card debt.

From The Daily Beast