A debt consolidation loan combines multiple debts—like credit cards, medical bills, or personal loans—into one single loan with one monthly payment. The goal is simplification and, ideally, a lower interest rate than what you're currently paying across various accounts. Instead of juggling multiple due dates and interest rates, you make one payment to one lender. This can reduce stress and help you see your progress more clearly.

Just be mindful: consolidation works best when paired with a plan to avoid taking on new debt, otherwise you risk adding to your obligations rather than reducing them.