Consolidate, consolidation debt, or debt consolidation, call it whatever you like but the concept is the same.  The word "consolidate" basically means to join into one - to bring together into a single whole or structure.  Simply put, take several things and boil them down into one thing.  That being said, I think you get the idea. 

Take that idea and apply it to the world of personal or business finances and you come up with the concept of debt consolidation.  Well, how does it work? You might be asking.  Well, let me tell you.  Debt consolidation is the process of securing a loan for the sole purpose of paying off or paying down several other loans.  Today, most people use a debt consolidation loan to pay off their credit card debt; which can be a very good thing to do, especially if your credit card accounts charge a high interest rate.

Also, consolidating your assorted loans into one single loan can make the overall debt amount easier to keep track of which can help you in your planning of debt repayment.  Another great plus to debt consolidation is making one monthly payment for one loan, rather than having to make several monthly payments spread throughout the month.  In most cases, the time you save not having to go through the process of filling out checks, logging them into your check register, stuffing everything into the right envelope is well worth it, not to mention what you will save in postage stamps.

Consolidation of debt can be a beneficial approach to handling a short-term financial problem due to a health related crisis, unemployment, divorce, or some other unforeseen difficulty that sets you back financially.  In situations like these, it’s not uncommon for people to fall back on credit to make it through the lean times.  Unfortunately, all to often riding out a situation like the fore mentioned using credit could easily leave you with way too much debt to handle.

How much debt is too much debt?  These are the tall tail signs of carrying too much debt.

• Do you find that you’re paying some or all of your bills late every month?

• Do you have to take cash advances from your credit cards to make payments on other credit cards or loan accounts?

• Do you emotionally stress and get angry or depressed when it’s time to pay your bills?

• Is most of your paycheck committed to debt repayment, leaving you with little or nothing to live on?

• Do you dread answering the telephone or opening your mail due to having to deal with bill collectors or past due notices?

If some or all of these signs ring true for you, you are probably carrying too much debt in your financial life and you should take the appropriate action to remedy your situation as soon as possible. Debt consolidation is not always the right answer for every debt situation but for many it can be the perfect solution.  To know for sure, you should get the expert opinion of at least three or four financial advisors before you make your decision.  

Glean as much unbiased information as you can, then make your decision about consolidate, consolidation debt, or debt consolidation – whatever you want to call it.  I hope this has been helpful.