Debt consolidation is the name for a loan that you use to pay off all your other unsecured debts.
A debt consolidation loan can be taken out to pay debts such as credit cards and store cards, catalogues and personal loans.
Taking out a debt consolidation loan means that you will only have to make one monthly payment rather than several monthly payments to cover your debts. This can make it easier for you to manage your finances and, in theory, makes keeping up with your payments simpler.
Consolidation is not the best solution for everyone and could leave you in a worse financial situation than you are currently in. Make sure you think carefully before taking out a debt consolidation loan.