Editing Debt consolidation (section)

{{Short description|Form of debt refinancing}}
{{Personal finance}}
'''Debt consolidation''' is a form of debt [[refinancing]] that entails taking out one [[loan]] to pay off many others.<ref name=Investopia>{{cite news|last1=Fontinelle|first1=Amy|title=Alternatives To Balance Transfers|url=http://www.investopedia.com/articles/personal-finance/112614/alternatives-balance-transfers.asp|access-date=21 December 2014|work=Investopia|date=November 26, 2014}}</ref> This commonly refers to a personal finance process of individuals addressing high [[consumer debt]], but occasionally it can also refer to a country's [[fiscal policy|fiscal]] approach to consolidate [[debt|corporate debt]] or [[government debt]].<ref name=china>{{cite news|last1=Global risk insights|title=China's Interest Rate Cut Not as Reformist As It Seems|url=http://seekingalpha.com/article/2770105-chinas-interest-rate-cut-not-as-reformist-as-it-seems|access-date=21 December 2014|work=Seeking Alpha|date=December 20, 2014}}</ref> The process can secure a lower overall [[interest rate]] to the entire debt load and provide the convenience of servicing only one loan or debt.<ref name="Ryan2011">{{cite book|author=Joan Ryan|title=Personal Financial Literacy|url=https://books.google.com/books?id=zdWrPiSGXY4C&pg=PA292|access-date=13 December 2011|date=14 January 2011|publisher=Cengage Learning|isbn=978-0-8400-5829-4|pages=292–}}</ref> Debt consolidation is sometimes offered by [[loan sharks]],<ref>{{Cite web |title=Debt consolidation |url=https://nationaldebtline.org/get-information/guides/debt-consolidation-ew/ |access-date=2024-08-27 |website=www.nationaldebtline.org |language=en-GB}}</ref> charging clients exorbitant interest rates.<ref>{{Cite web |title=Loan shark debt |url=https://www.stepchange.org/debt-info/owing-money-to-loan-sharks.aspx |access-date=2024-08-27 |website=www.stepchange.org |language=en-GB}}</ref> Further regulation has been discussed as a result.<ref>{{Cite web |title=Long-Term Debt Requirements for Large Bank Holding Companies, Certain Intermediate Holding Companies of Foreign Banking Organizations, and Large Insured Depository Institutions |url=https://www.federalregister.gov/documents/2023/09/19/2023-19265/long-term-debt-requirements-for-large-bank-holding-companies-certain-intermediate-holding-companies |access-date=2024-08-27 |website=www.federalregister.gov |date=19 September 2023 |language=en-US}}</ref><ref>{{Cite web |title=Code of Federal Regulations |url=https://fiscal.treasury.gov/debt-management/legal-authorities/code-of-federal-regulations.html |access-date=2024-08-27 |website=www.fiscal.treasury.gov |language=en-US}}</ref><ref>{{Cite web |title=Agencies request comment on proposed rule to require large banks to maintain long-term debt to improve financial stability and resolution |url=https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230829a.htm |access-date=2024-08-27 |website=www.federalreserve.gov |language=en-US}}</ref>