In short, Debt Consolidation is a form of debt relief that many people turn to get themselves out of really potential hot water.  In a nutshell, it entails the process of taking out one large loan.  Preferably this loan will be a low interest loan, and will be big enough to cover all of the borrower’s bad debt.  They then take that extra money and pay off all of that debt far in advance.  By doing this, the borrower is greatly reducing the amount of money that they owe.  This brings down their monthly payments, and also provides for greater convenience when budgeting the monthly bills.