Loan consolidation is the process of combining multiple loans into a single loan, making it easier to manage your debt. This can be particularly helpful for individuals with various student loans, credit card debts, or personal loans. By consolidating, you can simplify your monthly payments and potentially secure a lower interest rate, which can save you money over time. When you consolidate your loans, you take out a new loan to pay off the existing ones. This means you’ll have just one monthly payment instead of several, which can reduce stress and help you stay organized. It's important to consider the terms and conditions of the new loan to ensure it meets your financial needs.