Exonerate – is this a fancy term for consolidation?
Exonerate means to free from a responsibility, obligation, or task while consolidation the action or process of making something stronger or more solid.
The two terms completely mean different things but people tend to use exonerate in a bid to simplify life for someone whose debts have been consolidated, in that case they prefer to use exonerate. This simply means someone is now in charge or overseeing how you can completely take care of your debts.
Debt consolidation means taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones. In effect, multiple debts are combined into a single, larger piece of debt, usually with more favourable pay-off terms: a lower interest rate, lower monthly payment or both.
In a general sense, this term means to free from blame or guilt, such as when a criminal is proven innocent. In the financial realm, exoneration usually means to relieve one of a financial obligation or duty. This can apply in many different areas of finance, such as taxation or mortgages.
The various financial aid programs offered by the government to provide relief to struggling homeowners are forms of exoneration. Delinquent mortgage holders will be exonerated of their current obligations and reassigned new ones that they can manage more easily. A taxpayer who convices the IRS that he or she does not owe taxes that have been assessed is also exonerated from paying those taxes.
