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    You do this by taking out a new loan for the amount of the balances of the existing loans, use the newly borrowed money to repay all the older loans, and then focus on repaying your one new loan.This simplifies your financial situation and makes it easier to keep track of loan terms, payments, and other information you need to know.With this method, the Direct Consolidation Loan is used to pay off your old debts.

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    By consolidating credit card balances, loans and lines of credit, you can pay down debt faster with one easy monthly payment – often at a lower interest rate.

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