Showing results for consolidation loan. Search instead for consolidating bank.

consolidation loan

American

noun

a loan made in order to consolidate several debts into one loan, usually for the purpose of reducing the monthly payments by extending them over a longer time period.

consolidation loan British

noun

a single loan which is taken out to pay off several separate existing loans

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

WSJ | Buy Side: A debt consolidation loan can help you streamline credit cards and other high-interest debt, but access to the lowest-rate debt consolidation loans often requires a higher credit score.

From The Wall Street Journal • Mar. 2, 2026

“The timely repayment of a consolidation loan that reports to your credit bureau is more beneficial to you in that area than an invisible batch of buy-now-pay-later accounts,” McClary said.

From MarketWatch • Jan. 8, 2026

Consolidating a defaulted loan allows a borrower to pay off one or more federal student loans with a new direct consolidation loan.

From Los Angeles Times • May 6, 2025

One option may be consolidating your credit cards under a 0% balance-transfer card or a debt consolidation loan, which saves money on interest and frees up additional cash.

From Seattle Times • Sep. 20, 2023

I tried to get a debt consolidation loan, but my initial applications only got me about $16,000.

From Slate • Dec. 27, 2022

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023