Debt consolidation is a method of paying down your debt by borrowing a larger loan that you then use to pay off multiple smaller loans or credit cards. You may be able to consolidate high-interest credit card debt or other types of debt through borrowing a large amount. One of the main advantages of debt consolidation is that it puts all of your debt “under one roof.” Rather than trying to keep track of several monthly payments and interest rates, you only have to make one, fixed monthly payment. Additionally, depending on the rates you have across your accounts, you may end up with a lower overall interest rate, which could help you save money on the amount you pay in interest.