Debt consolidation is the magic phrase that helps many consumers each year who have become overburdened with their creit card debt or with other debt. It is possible to save yorself money in the short term and stres over the long term by making smaller monthly paymnts to a single loan company rather than making many larger payments. There are two basic kinds of debt conslidation: secured loans and unsecured loans. Secured debt consolidation loans are loans in which you use your mortgage to help you out of debt.