• Debt consolidation is the act of taking one loan to pay off multiple debts.

  • There are two different types of debt consolidation loans: secured and unsecured.
  • Consumers can apply for debt consolidation loans, lower interest rate credit cards, HELOCs, and special student loan programs.
  • The benefits of debt consolidation include one monthly payment instead of multiple payments and a lower interest rate.
  • When debts are consolidated, longer payment schedules can lead to an increase in the total amount of payments.