Consolidation Loan

Business, Legal & Accounting Glossary

Definition: Consolidation Loan



Full Definition of Consolidation Loan


A consolidation loan is a type of loan that encompasses a number of other liabilities into one loan. The greatest advantage of a consolidation loan is its low rate of interest. For instance, those with outstanding credit card debt face significant interest rate charges and may, therefore, benefit from a relatively low-interest rate consolidation loan that actually reduces the dollar amount owed each month. Other powerful pluses of a consolidation loan are practicality and convenience. By encapsulating all debt into one loan, a consolidation loan can break through the clutter of numerous bills and place all debt on one consolidation loan statement. A consolidation loan can provide a one payment solution for such financial burdens as credit card bills, automobile loans, college loans, and various other consumer debt.


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Modern Language Association (MLA):
Consolidation Loan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 05, 2020 https://payrollheaven.com/define/consolidation-loan/.
Chicago Manual of Style (CMS):
Consolidation Loan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/consolidation-loan/ (accessed: July 05, 2020).
American Psychological Association (APA):
Consolidation Loan. PayrollHeaven.com. Retrieved July 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/consolidation-loan/

Definition Sources


Definitions for Consolidation Loan are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February, 2020 | 1 Views.