Debt consolidation is a type of unsecured personal loan where the only collateral that you have to offer is yourself. It is basically the exchange of one loan for another. If you feel that you cannot afford your monthly payment then these loans can be taken any time. If you have several high interest debts you can consolidate it into one lower fixed rate loan. In order to consolidate your debt various sorts of credit types of these loans can be used.The second mortgage loans of this category is such as cash out refinance debt consolidation loan, home equity line of credit home loan or even a credit card balance transfer is also available to help consolidate debt that have been built by you over a period of time. There are different sorts of ways to consolidate the different types of debts in different sorts of ways.These loans are present in two forms i.e. in secured and unsecured form. Higher rate of interest is charged in case of the unsecured form since no collateral has to be placed and in that case the borrowers are considered to be at a risk. So you can get comparatively lower interest rates as compared to what you are paying right now. While, in case of secured loans the borrowers can avail the loan amount at a lower cost even if they have a bad credit history.Special types of these loans are also present for the student and military debts. With military debt consolidation loans, you will be allowed to lower your interest rate and to allow you to make monthly payments in a timely manner and thus you will have an easy budget to maintain. Where as, in case of student debt consolidation loan, you can lower your interest rate which will allow you one monthly payment to one lender.