Often there is some confusion to what debt consolidation is and how it works.  Debt consolidation means you add up all your debts and put them all in one loan with the outlook of creating one manageable repayment.   Having all your debts in one loan could potentially save you on overall interest charges and fees.

Debt reduction loans do not directly reduce your debt but rather repackages it into a format that improves cash-flow and provides a better structure to allow the debt to be paid off more efficiently.

Overall debt consolidation is about efficiency.