When it comes to debt consolidation, many Americans are in the dark. The extent of their knowledge is that debt consolidation is often utilized by people who have bad credit and are seeking a way to get out their debt. However, consolidation loans, debt management, and credit counseling often go together as a means to educate people against poor financial decisions to help them avoid being stuck in the same financial situation in the future.Loans consolidation and debt relief are offered by thousands of companies across the nation. These companies make their money from consolidating loans for people with debt and then taking a portion of the payment the person makes toward their consolidation. While this is a pretty standard business practice, some companies take advantage of this and take upwards of 30% of each monthly payment. This is absolutely unacceptable and is one reason why reading the fine print on a loans debt consolidation is absolutely necessary.Education loans are one reason people seek loans consolidation for debt relief. Taking out numerous education loans while in college can lead to several different interest rates, repayment rates, and an all around hassle for any student fresh from college. By consolidating these education loans into one lump payment, students are better able to repay their loans on time and avoid severe penalties and possible hits to their credit score.The Definition of Unsecured Consolidation LoansUnsecured consolidation is the most commonly used type of debt consolidation since it does not require any collateral to back the loan, such as a house or car. This type of loan typically comes with a variable interest rate and while it is good to consolidate your debts under the roof of one lender, you should be sure the amount of interest you are paying and the fees taken for such services do not over-burden you. Unsecured consolidation is best for those who do not have any collateral, or those who are not willing to risk their homes on getting out of debt for good.Other factors you need to consider include understanding how you managed to get yourself into debt in the first place. Education loans, massive credit card bills, high mortgages and car payments are all contributing factors to debt and some of them are unavoidable. However, speaking with a debt counselor about your current situation can better shed light on the choices made that have resulted in debt, and better allow you to understand how you can stay debt-free once you are out of debt.