Debt consolidation is a financial strategy that combines multiple debts into a single loan with a potentially lower interest rate, simplifying repayment and reducing financial strain. This approach helps individuals manage their obligations more efficiently by replacing various payments with one predictable monthly installment. By consolidating debt, borrowers can streamline their finances, lower overall costs, and stay on track toward financial stability. It provides a structured alternative to juggling multiple high-interest debts, making repayment more manageable while preserving credit health.