To consolidate is to combine assets, liabilities and other financial items of two or more entities into one.In the context of financial accounting, the term consolidate often refers to the consolidation of financial statements, where all subsidiaries report under the umbrella of a parent company.
Within the consumer market, consolidation includes using a single loan to pay off all of the debts that are part of the consolidation.
This transfers the debt owed from multiple creditors, allowing the consumer to have a single point of payment to pay down the total.
Often, debt consolidation achieves more manageable monthly payments and may result in a lower overall interest rate.
If you need help getting out of debt, you are not alone.
Other options include borrowing against a whole life insurance policy and borrowing against you retirement savings.
The best way to consolidate a large amount of credit card debt (anything over ,000) without taking on a new loan, is to enroll in a Debt Management Plan.
This information is also reported on the income statement of the parent company.
This is used when the parent company holds a majority stake by controlling more than 50% of the subsidiary business.
Consolidate Your Debt Now Debt consolidation is combining several unsecured debts — credit cards, medical bills, personal loans, payday loans, etc.