Debt Consolidation defined br br Debt consolidation is using one loan to pay off multiple loans. This is to either lock-in a fixed interest rate or to obtain an interest rate that's lower than that of the other loans. Debt consolidation also offers the ease of one monthly payment. Consolidating liabilities is usually done when one or more unsecured debt obligations begin to become overwhelming. This is just one debt relief option out of many. Always consult a professional before making a decision.