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Colette wants to consolidate her credit card debt. Which type of loan is best for her to inquire about?

A. Consolidation loan
B. Mortgage
C. Personal loan
D. Student loan

1 Answer

3 votes

Final answer:

The best type of loan for Colette to consolidate her credit card debt is a Consolidation loan, as it is specifically designed to roll multiple debts into one with potentially lower interest rates.

Step-by-step explanation:

For Colette, who wants to consolidate her credit card debt, the best type of loan to inquire about is a Consolidation loan (A). This specific type of loan is designed to combine multiple debts, particularly those from credit cards, into a single loan with a potentially lower interest rate. It simplifies the repayment process because it involves making a single monthly payment rather than juggling several payments with varying interest rates. Other types of loans, such as a Mortgage (B), Personal loan (C), and Student loan (D), are usually for specific purposes like home buying, personal expenses, or education, and therefore not ideal for debt consolidation.

User Nikunj Damani
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