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The Truth About Debt Consolidation | DaveRamsey.com

How Does Debt Consolidation Really Work? Let’s say you have $30,000 in unsecured debt—think credit cards, car loans and medical bills. The debt includes a two-year loan for $10,000 at 12% and a four-year loan for $20,000 at 10%. Your monthly payment on the first loan is $517, and the payment on the second is $583.