Loan Programs   Debt Consolidation Debt Consolidation is a debt repayment plan to help ease your payments by reducing interest rates. With a debt consolidation loan, all your debts will be consolidated into one simple monthly payment. There are several ways debt consolidation can be achieved. One way is to take out a second loan on an existing property to pay off existing debts. Another way is to refinance an existing property and taking out cash from the property if there is sufficient equity.