Debt consolidation consists of taking out one loan, which covers all of your current debts, turning multiple repayments into just one. This may involve personal loans, credit cards and other unsecured debts. The aim is usually to make managing your debt easier, by having just 1 monthly repayment, which costs less than the multiple debt repayments that you were paying. It is important to carefully consider whether debt consolidation is right for you, as it may end up costing you more than repaying your debts separately.