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Credit Debt Consolidation Loans Credit debt consolidation loans are designed to assist individuals who have too much debt to manage on their own. They are loans that allow individuals to borrow money to pay off existing debts, such as credit card bills, medical bills, or other types of loans. The loan is usually secured by some type of collateral, such as a vehicle or a home. These loans can be beneficial for those who are struggling to make payments on their existing debts, as they can help to reduce interest rates and monthly payments. Additionally, debt consolidation loans can help to improve an individual's credit score, as the loan is typically paid off in a timely manner.