A Debt consolidation loan: Is a personal loan you use to pay all your debts. You may odtain it from a finance company, bank, credit union, debt consolidation company, merchant association, debt pooling service, or nonprofit consumer debt service. You may also borrow from friends and relatives.A Debt consolidation loan: Lets you effectively shift responsibility for many debts to the responsibility for one larger debt. In order that this debt is manageable, your payments are spread out over a long.