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What is the difference between credit counseling and debt consolidation?

April 26, 2017Credit Counseling debt consolidation

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What is the difference between credit counseling and debt consolidation?

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The ads all sound similar. When a mortgage or finance company uses the term “debt consolidation” they are referring to a loan. This is usually a loan that takes equity from your home to pay off credit cards. This option lets you pay off higher interest credit cards immediately, but lowers your equity and ultimately costs you more money over the life of your loan.