When you are in debt, the best thing that you can do is pay off the debt in order to improve your credit score and also to get yourself on a road to financial freedom. Debt is stressful and millions of people are struggling financially as a result. Consider consolidating your debt in 2011 in order to eliminate the need to balance debts and to see them paid off immediately. In today’s economy, the less debt you have the better. It is crucial to address your debt situation and to improve your bad credit as quickly and efficiently as possible.When you borrow a consolidation loan, your debts will be paid in full. Keep in mind that this includes your unsecured debts. So, your mortgage and car loans will not be included in the consolidation loan. You will be left with a single debt, rather than several. Each month, you will pay a single payment on your consolidation loan and your other debts will have been resolved. Generally, the terms of a consolidation loan will make it affordable for consumers. Lenders will work with you to find a payment and loan term that works best for you.There are many places where you can borrow debt consolidation loans and it is important that you work with a reputable consolidation company in order to ensure that the lender is looking out for your best interests.The biggest advantage to using a consolidation loan is that the interest rate on the loan will almost always be significantly less than the interest rates on your individual debts. This applies specifically to credit cards, which can have an interest rate over 20% if you are making only minimum payments or you are behind on your payments. This is definitely a question that you need to ask when you are considering debt consolidation in 2011. You need to find a way to improve your credit immediately and you need to be careful that you do not end up paying more. A good lender will help you find a low interest rate.Imagine how nice it would be to pay just one bill each month, as compared to juggling several and not necessarily being able to pay all of them. When you consolidate, you will find that you have eliminated the time and work required in addition to the stress and that is –believe me, priceless.