A debt consolidation loan is a financial product that allows individuals to combine multiple debts into a single loan. This can simplify payments by reducing the number of creditors to manage and may lower monthly payments. Typically, these loans come with a fixed interest rate, making it easier to budget over time. Borrowers often use debt consolidation loans to pay off high-interest debts, such as credit cards. By consolidating, they can potentially save money on interest and pay off their debts faster. However, it's important to consider the terms and ensure that the new loan is manageable.