A debt consolidation loan basically takes all of your bills, such as those from credit card companies, household bills etc. Then, they are all consolidated into one monthly payment which is lower than the sum of payments on individual debts. Then, as long as you are able to make this one monthly payment, your credit will remain in good standing and you will be working toward the goal to get your bills paid off.

Now-a-days Debt Consolidation companies can give discount on loan. But debtor is in danger of bankruptcy, the debt consolidator will buy the loan at a discount. Consolidation can affect the ability of the debtor to discharge debts in bankruptcy, so the decision to consolidate must be weighed carefully. Debt consolidation is often advisable in theory when someone is paying credit card debt. Other conditions and policies may be vary in different companies.

Thanks.

Well, he said right about small loan consolidation programs. But if you wanna know about mortgage consolidation program than read below mentioned article.
Mortgage Consolidation

Well it's nice article
thanks for sharing it.