Debt Consolidation Basis

Surely there is not much discussion as to what the term “debt” refers to. Still, the term “consolidation” may present some obstacles that can be easily dodged.Consolidation implies the combination, uniting or joining of two or more entities. When it comes to debt, consolidation implies consequently the combination of two or more debts. There is probably one exemption to this rule:
Federal student loans are said to be consolidated when the variable interest rate is locked and changed to a fixed rate.However, the term is used to differentiate between such procedure and refinancing which consists not on locking the rate but on getting a new loan with different terms (including the rate).We have repeatedly said that debt consolidation can be achieved by different means. That’s why debt consolidation is the genre for debt consolidation loans which are therefore a type of debt consolidation.