There are plenty of loans which every individual takes in the market. Some people take the bare minimum of three and carry on with their lives happily ever after. But there are many in the market that are not satisfied with just three and thus keep taking more and more and debt. The actual amount might be a manageable lot for the applicant but with so many banks and financial institutions to pay off separately, can be a quiet a task for someone who actually has a full time job and is not a great fan of boring paper work. Thus what the person can do is make sure that they are aware about all the debt they actually have and all the paper work involved with such kinds of debt in the market. The idea behind such debt or forms of credit is that the person needs to make sure that they have everything in order. If they cannot then what else is the debt consolidation loan role in the market. Also they have to make sure that the person should at least have all the required amount of papers and valid documents so that the consolidation loan folks do not actually have to search through the applicant house in the market. All the person has to do now is to make sure that they pay the big installment which the debt consolidation loans would demand from the individual. Now they will only have to pay a single installment after they take such kind of debt from the market. The company will now talk to all the banks from which the debt was taken by the individual in the market. Thus what these folks can do is try to negotiate the terms and conditions of the debt taken. The actual debt could be reduced or the interest rates could be reduced as well. Thus through this method the company itself makes a nice profit on the side and they also charge a low rate of interest in the market if the negotiations go so well.