Debt consolidation can be a smart way to reduce your overall interest rate and pay down debt sooner. Debt consolidation works by taking out a new loan at a lower rate to pay off a number of other loans you may have at higher rates.
For example, let's say you have a home valued at $1m and a loan against the home of $500k.  You also have 2 credit cards with a total of $20,000 owing on the cards. The credit cards are charging 15% per annum. You also have a car loan of $30,000 at a rate of 6%.
It may be possible to draw down a further $50,000 against your home to payoff (consolidate) the credit cards and car loan and instead of paying 15% or 6% on the debt, you reduce it down to a home loan rate under 3%.