Debt consolidation combines all of your debt into one loan, usually at a lower interest rate than you were paying individually. Debt consolidation does not eliminate your debt, it simply makes it easier to handle.  Consolidation your Debt is not the same as credit counseling, although counseling may be a good idea if you need debt consolidation. When you obtain a debt consolidation loan, it’s important that you don’t continue to spend so that you incur additional debt.