A debt consolidation loan can be best described as a debt management strategy that enables a borrower to consolidate all his high interest loans such as credit card payments or car loans into a single loan. Usually, debt consolidation loans are offered at a lower interest rate than the other loans.

A debt consolidation loan can be best described as a debt management strategy that enables a borrower to consolidate all his high interest loans such as credit card payments or car loans into a single loan. Usually, debt consolidation loans are offered at a lower interest rate than the other loans.