What "debt consolidation" means in finance

Debt consolidation is the process of combining multiple debts into one single loan or payment, typically with the goal of lowering overall interest rates and monthly payments. This can be done through various means such as taking out a new loan, transferring balances to a credit card with lower interest rates, or working with a debt consolidation company. The objective is to simplify and streamline the repayment process while also reducing the financial burden of carrying multiple debts at once.