A debt consolidation loan is a personal loan that allows you to consolidate many other debts into one. For example if you have three credit cards, you are able to eliminate credit card debt by obtaining a debt consolidation loan to pay off the credit cards, so you only one payment per month instead of three.

The following sections discuss the advantages and disadvantages of obtaining a debt consolidation loan, and explain the criteria you must meet to be eligible for a debt consolidation loan.

Most people have more than one debt. You can high interest credit cards, loans and mortgages. To pay a debt, you borrow from someone else, creating yet another debt. The solution to this problem is debt consolidation.

If you own a house, you can create a debt consolidation home equity loan. With a debt consolidation loan, you have all your high interest credit card consolidate product and your consumer loans, into one inexpensive and affordable monthly payment with low interest rates.