Debt consolidation is done by borrowing money to pay off all outstanding debts.
Consolidation , from the Latin consolidatĭo , is the action and effect of consolidating or consolidating (giving firmness, security and solidity to something). The concept is common in economics with various uses.
Debt consolidation consists of converting a temporary debt into a stable debt. The mechanism involves borrowing money to settle (pay) the various outstanding debts. In this way, the debtor will only have a single debt with the same organization (the entity that granted the loan).
This procedure combines what were previously several debts into a single monthly payment, a feature that helps reduce financial costs and plan money management. The payment made each month, on the other hand, ends up being lower, although it is extended over time.
Consolidation of a company and employment
The consolidation of a company , on the other hand, is the integration of the different balance sheets of subsidiary companies into a single balance sheet of a parent company. The process may involve the transfer of assets. With consolidation, the financial statements of two or more companies that are legally independent are grouped.
We cannot forget either that, on the other hand, there is what is known as employment consolidation. Basically it is a tool that is usually used in institutions and public organizations so that people who work in them but do not have a position can finally achieve a permanent position.
Hence, to offer them this possibility, a series of mechanisms are put in place, such as procedures that have a competition part, where their merits and the years they have been working will be scored, and another opposition, which will measure their knowledge on a specific topic. .
With the consolidation of a company, the various balance sheets of its subsidiaries are integrated into a single balance sheet of the parent company.
The concept and the ground
On the other hand, we cannot ignore the fact that there is also what is known as soil consolidation. This is a procedure that takes place within the industrial, construction and geographic scope, in many cases.
That is a term that is used to define the entire process that takes place from what would be the reduction in the volume of certain soils, normally those that are silt or clay. This circumstance occurs as a result of placing a series of masses on them.
This aforementioned soil consolidation process lasts a long period of time, which can be of two types. Thus, on the one hand, there is the primary one, which is the one that occurs in a single dimension. And, on the other hand, there is the so-called secondary that takes place from the previous one and is defined because other factors such as water also intervene.
Consolidation in everyday language
In everyday language, consolidation refers to strengthening something or putting something back together so that it remains firm .
For example: “The trip was so perfect that it consolidated our courtship,” “Paula's move prevented the consolidation of our friendship since Ramona had to travel a long distance to visit her,” “The consolidation of this project requires commitment and efforts of everyone” , “Messi achieved consolidation as the best player in the world in 2009” .