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Consolidation can simplify administration without reducing cost
Combining several due dates into one may change how a household manages payments.
That administrative benefit is distinct from a reduction in the total obligation.
Term, fees and any balances left open determine the cost comparison. A description should keep convenience and arithmetic separate so neither is used as proof of the other.
Compare secured and unsecured structures
Definitions
- Security
- Asset or interest supporting an obligation under the agreement, with consequences determined by its terms and applicable law.
- Guarantor
- Person who takes on obligations described in a guarantee; the extent of liability must be read in that agreement.