Consolidation
There are different meanings of consolidation depending which sphere you are operating in, but in the loans industry, consolidation specifically refers to taking out one large loan to pay off any existing debts. The benefit of getting this type of loan is that, rather than having to keep track of multiple monthly outgoings, you only have to make one monthly payment to one lender. Thus consolidation can greatly simplify your financial affairs.
The other way consolidation might be used in terms of personal debt, has the same effect as a consolidation loan, but the difference is in the detail. You might agree to join a debt management plan, in which case you would make a single monthly pay to a consolidation negotiator, who then deals with your creditors on your behalf. This involves an amount of trust on your part, but a good company might be able to bargain for better repayment rates, and in this way you would pay no more than you were doing previously, but the consolidation company would still make money for themselves.
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