People hear the words debt consolidation frequently bandied about and many are a bit uncertain what the term actually means.

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

As the word debt consolidation implies debt must have some connection with such things as loans or credit.

Consolidation which is the second word in the term debt consolidation clearly suggests the lumping of numerous bits and bobs into the one single unit.

Putting the two words together again which form the term debt consolidation it becomes apparent that the term debt consolidation is the combining of several or numerous debts into one, and these debts are for example loans and credit cards

Debt consolidation really can make financial life easier for many as instead of having numerous pieces of debt to pay each month the person arranging debt consolidation will be left with only one payment in the place of the many.

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 cards come with interest rates rarely less than 20% APR to more than 40% and with remortgages starting at 1.98% and secured loans from 9%, debt consolidation appears a very attractive proposition.

As both remortgages and secured loans require the security of a property it goes without saying that the property must have sufficient equity attached to it , and what equity is, is what is left when the value of the property is taken away from the mortgage on the house.

Even for those without equity there are different forms of debt consolidation such as debt management although strictly speaking debt management is a different proposition.

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.