Debt consolidation is a financial strategy that involves combining multiple debts into a single loan or payment plan, often with the goal of securing a lower interest rate or more manageable monthly payment. This can simplify debt management, reduce monthly payments, and potentially save money on interest over time. Common methods of debt consolidation include personal loans, balance transfer credit cards, and home equity loans. While it can be an effective way to manage debt, it requires discipline and a commitment to not accumulating new debt to ensure long-term financial improvement.