This is when an individual has multiple debts as once and then consolidate it all into one larger debt so it is easier to track and pay for the individual. The individual in debt does this by taking out a new loan big enough to pay off all other debts against them so in effect the debt built up is combined. It is a very good option if you can manage to get a lower interest rate than the rate that you have on the multiple other debts that you have but if you are hopelessly drowning in debt with bad credit it is a bad option as you wont get a better interest rate. If you do it right you can make your credit score go up by keeping up with your payments on the new loan and paying off the old ones. The pros of this are obvious as it simplifies and eases the process of keep up with your debt payments but of course there are also cons like being in debt for 2-5 years and if you cant keep up with it you will still be left with the same amount of debt.