Debt consolidation refers to the replacement of several debts or loans with one single loan. There are a number of reasons why an individual may choose to consolidate their various debts into one loan and the overall benefits of doing so are also multitudinous.The majority of individuals who find themselves in a position which necessitates a complete overhaul of their debt situation will do so due to their inability to stay on top of current debt and loan repayments. It is unfortunately also the norm that a large component of the total amount being paid out each month in servicing debts will tend to be interest payments. Debts such as credit cards and unsecured loans will on the whole incur higher levels of interest and it is often the case that by paying back the minimum monthly sum to cover credit card debt, you will in fact be only making the smallest of dents in the total amount owed due to the interest accumulation. Similarly, the total amount repayable on an unsecured loan taken over a long period will often be a substantially larger sum than the amount borrowed due to the high interest rate.Debt consolidation loans are for the most part low interest loans and the repayment duration is matched to the circumstances and finances of the individual. By replacing a number of smaller loans or debts with one loan which offers a lower rate of interest, the hassle of covering multiple bills is significantly reduced, along with both the amount paid per month and the total figure paid once the consolidation loan has been cleared. All in all, debt consolidation loans offer a means of paying off debt quicker, for less financial outlay and in doing so induce considerably less stress than juggling various creditors.Debt consolidation can be performed without a specifically tailored debt consolidation loan by using a credit card which offers an interest free period on balance transfers. Although this method does allow you to consolidate multiple debts it is not a reliable method of doing so. If you are unable to pay off the full balance transferred onto the new credit card before the interest free period expires, then high interest will applied to the remaining figure- which could well simply serve to perpetuate the problem. By contacting a professional debt help organisation you can rest assured that you are taking steps to bring about an end to your debts and doing so in the most time and cost effective manner.