A Debt consolidation loan is a loan used to reimburse several other debts. It is a low cost loan secured on collateral as your home, your vehicle or any expensive asset. Debt consolidation loans consolidate all debts incurred through personal loans, overdrafts, or any number of unpaid bills. Debt consolidation gives you a fresh start, making it possible for you to consolidate all of your loans into one providing you one easy payment to mange, and that to at lower rate of interest.

If the loan is secured on your home it can sweep away the pile of repayments to your credit and store cards, loans and replace them with one, low cost, monthly payment