Consumer debt consolidation is a process that takes debt held by more than one lender and combines it into one loan. There are a number of advantages of consumer debt consolidation, both in terms of finances and conveniences. In addition to having fewer bills to pay, the interest rate may be lowered. There are many different ways to consolidate debt, each one having its own advantages and disadvantages.

One popular strategy for consumer debt consolidation is to take out a home equity loan. This can be used to pay off credit cards, which are unsecured loans, using the equity in a home. Thus, the unsecured loan becomes a secured loan, which presents less risk to the lender, and should result in a more favorable interest rate. The potential negative aspect of this strategy is that the borrower is putting his or her home at greater risk.

Another strategy is to put all the debt on one credit card. This consumer debt consolidation can be risky, especially for those who have not learned how to manage debt properly. As long as the borrower has the discipline to put the debt on one credit card, and not begin charging immediately on the others, this strategy can pay off. A credit card company may even offer a special interest rate for transferring a balance from one card to another.

For those who are running into trouble, and find they can no longer pay all their bills on time, the other strategy for consumer debt consolidation is to seek credit counseling services. These services are usually non-profit agencies that can help a borrower with consolidating debt and offer debt management strategies. Usually, such services are offered for no fee, or for a nominal fee, depending on the situation. Consumer credit counseling agencies are available in many cities in the United States and other locations around the world. One disadvantage to this strategy could be a poor mark on the borrower's credit, if repayment plans with lenders are renegotiated. This is a serious concern, since renegotiation is likely to occur.

Ultimately, it is up to the borrower to decide if consumer debt consolidation is the right move for him or her. While there can be some significant savings, there are also some additional risks that take place with all three of the strategies mentioned previously. The key, in many cases, is not so much consolidating the debt, which can help, but rather finding a way to manage debt comprehensively.