Debt Consolidation is a financial strategy that involves combining multiple debts into a single loan with more manageable terms, such as a lower interest rate or longer repayment period. This approach simplifies debt management, reduces monthly payments, and can save money on interest over time. Debt consolidation loans are typically used to pay off credit card balances, personal loans, or other high-interest debts. Borrowers can opt for either secured or unsecured loans for consolidation.