Debt consolidation is the act of taking out a new loan to pay off other liabilities and consumer debts, generally unsecured ones. Debt consolidation loans don't erase the original debt but transfer a consumer's loans to a different lender or type of loan.

Debt consolidation is a financial strategy, merging multiple bills into a single debt that is paid off by a loan or through a management program. Debt consolidation is especially effective on high-interest debt such as credit cards.Debt consolidation rolls high-interest debts, such as credit card bills, into a single, lower-interest payment. It can reduce your total debt and reorganize it so you pay