Debt consolidation is when you have too many debts to pay off every month and you calculate the total sum and then take a loan and pay them all off. You will have to shop around for a bank or money lender to give you an appropriate loan for this purpose.
Check online as well as there are many debt consultants that will help you to consolidate your debts. You can check out the sites and see what they have on offer. For a fee you can enrol with one of these agencies online and they will help you by negotiating with your creditors for a reduction in interest on overdue accounts.
They can even go so far as to offer your creditors a reduced amount of what you owe them immediately, or they can get the whole amount paid off to them over a couple of years. Most creditors would rather cut their losses and take less money immediately than have to wait for many years for the money. This will make a big difference to the balance of your accounts. You can now choose to pay them off or they will give you a loan for the balance of the debts.
If you have a problem with debt, it is better to get counselling for your problem, otherwise you might find yourself in this same predicament again. Counselling can be obtained from banks and debt counsellors that advertise online.
There are so many people who are in debt and the most sensible solution to get out of it is to consolidate them and pay them off with a loan. You will in actual fact be exchanging a lot of debts for one debt. The difference is that you will be given time by the bank to pay off the loan and usually the interest rate of the loan is lower than the interest on the debts.
The first thing to do is to shop around for a loan. The best loan to take is usually the personal loan. If you are a home owner there is the home equity loan and the second mortgage. The second mortgage is a good loan to take if the debts amount to a large sum of money. Both these loans are secured against the home.