Debt consolidation can be a useful tool for some people to help them to get out of debt, and regain some financial freedom. Debt consolidation works by you taking out another loan in order to pay the ones that you have currently. The idea is that you end up with one monthly payment to manage instead of several, and in some cases you will end up with a lower rate of interest.
Like any type of loan (even a freedom debt relief loan), taking out a debt consolidation loan warrants careful consideration.
Secured or unsecured
There are two types of loan, secured and unsecured.