Debt consodilation means taking of oone loan to pay others debt which is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loans.It is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan where  credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Debtors with property such as a home or car may get a lower rate through a secured loan using their property as collateral.Then the total interest and the total cash flow paid towards the debt is lower allowing the debt to be paid off sooner, incurring less interest.The collateralization of the loan allows a lower interest rate than without it, because by collateralizing, the asset owner agrees to allow the forced sale (foreclosure) of the asset to pay back the loan here risk to the lender is reduced so the interest rate offered is lower. http://debt-consolidation-services-review.toptenreviews.com/