There are several situations which almost force a person to go for loans. Sometimes, people become so helpless that they have nothing to do other than what situation demands. Financial crisis never ends. If you solve a problem now another will rise which makes people go for excessive debts. But the pain of repayment of those debts is much more aching. A person with single income will obviously find the pressure much more. That is why the debt consolidation loan is being provided. These are for those borrowers who are seeking help for paying debts off.As these loans are available in two forms, borrowers can go for any one of these. Among these the secured loans are for the homeowners. Actually, anyone who can pledge collateral is eligible for these loans. The benefits that one can enjoy while going for these loans is that the rate of interest in it is lower, amount offered is bigger and the repayment term too is longer. For that you will just have to offer your car, home or stocks and bonds as security.Unsecured loans are not like the secured ones. The rate of interest in it is higher, amount offered is smaller and the repayment term is shorter. Facilities in it may be less but it will relieve you by not asking for collateral.With any of these loans you can very easily lower your loan burdens. These loans work in a different pattern. For lessening your loan burden, it merges all your debts and rate of interest into one. This makes the borrower pay for only one debt and not the multiple numbers. Thus, the amount to be paid off gets reduced and so is the rate of interest. This way you can easily manage to pay installments each month which will result in reduction of debts.