What is meant by debt consolidation?

Debt consolidation is the process to merge multiple unsecured bills into a single and affordable payment plan. You can do it by enrolling into a program or taking out a loan. Although debt consolidation loans are quite popular, yet I would recommend you to go for programs. In debt consolidation loans, you may lose your assets. Plus, you may have to pay high-interest rate if your credit score is low.

I would suggest you talk to a consolidation company or a financial adviser to know about it in details. Because since you have read articles, I think you have some queries. So, talk to a consolidation company and they will answer your queries before you enroll in a consolidation program. You can also post your specific query here.

You'll list up your unsecured debts (debts with no collateral attached), you'll take out a low interest loan and pay off all the debts, now you have only one loan to pay. That's debt consolidation. You may enroll into a program or can do it yourself, it's totally your call.

In debt consolidation, you can merge your multiple debts into a single payment every month. You do this by taking out a consolidation loan or by enrolling with a debt relief company.