Debt consolidation is an expression commonly heard by many people but to some the exact meaning of the word debt consolidation is not clear.

Since the advent of the credit crunch nearly three years ago now, debt consolidation has been a term that has become more and more familiar to many, and yet many are still unsure of what these two little words in fact mean

Debt consolidation as suggested by the word debt obviously refers to some some sort of credit, loan or financial transaction.

Debt consolidation, with the second part of the expression being consolidation, is obviously taking numerous separate bits of pieces and rolling them into one single unit.

Considering these two words together what debt consolidation in fact is is the combining of a few or even numerous debts such as credit cards, personal loans, hire purchase, etc. and paying them of with one single repayment.

Dealing with debts monthly can be made much easier through debt consolidation leaving only one debt to be paid on a monthly basis which is a great deal better than having a large number of debts.

If a homeowner wishes debt consolidation the best route to take is via remortgages or secured loans which have extremely favourable interest rates, and are a fraction of the interest rates applied to the extortionate credit cards.

Credit card companies charge what amounts to rip off rates of even higher than 40% and when you consider remortgages from 1.98%, and secured loans from around the 9% mark it clearly shows what an asset debt consolidation can be.

Remortgages and secured loans must be secured on the equity of the homeowners property, and therefore there must be enough equity to secure the remortgage or the secured loan.

For those without equity there are less attractive ways to save money

Learn more about debt consolidation. Stop by Champion Finances site where you can find out all about debt advice and what it can do for you.