Consolidating debt is the process of combining multiple debts—such as credit card balances, personal loans, or medical bills—into a single, more manageable loan or repayment plan. This can simplify finances by reducing the number of payments and due dates, often resulting in a lower overall interest rate or monthly payment. Debt consolidation can be done through personal loans, balance transfer credit cards, or refinancing. This process may also involve rolling debts into a mortgage or using debt agreement options. It’s important to carefully compare options and understand the terms to ensure long-term financial benefits and avoid additional costs.