Debt consolidation can come in many forms, but they are all designed to do the same thing. Basically the purpose of all debt consolidation loans is to offer a borrower an alternative to owing multiple creditors. By replacing credit cards and other debts with a debt consolidation loan the borrower eliminates the need to worry about getting multiple checks out to multiple creditors, instead they typically will have only one creditor to be concerned with paying each month. When considering a debt consolidation loan a borrower should examine the multiple types of loans and decide what is best for them. Debt managing, credit counseling, home refinancing and even personal loans can be made available to a borrower who is searching for a way to consolidate their debt. Debt management and credit counseling are basically an agreement between the borrower and the lender concerning repaying the debt that is owed to the creditor. This form of debt consolidation combines a number of unsecured loans into one low payment to the counselor who in turn distributes the money to the creditors. A credit counselor will typically get the lending institution to apply more of the payment to the principal and less to the interest and this will typically lower the length of time it takes to pay off the loan. A common type of credit counselor is an attorney, many attorneys offer these services and they can be a great method of debt consolidation. Debt consolidation can also come in the form of a loan. Several types of loans are available for debt consolidation but the most popular method is a loan backed by the borrower’s home. A home refinancing loan can not only reduce the amount of credits that a borrower is responsible to each month but it can also reduce the overall amount due each month. Debt consolidation of this kind will depend on the homeowner’s ability to secure a home refinancing loan.The fact that a borrower owns a home does not guarantee that they will qualify for a home refinancing. Many factors come into consideration including whether the borrower has any equity in their home, or another words the value of the home on the real estate market exceeds the amount currently owed on the home.