First and Foremost. Debt consolidation is the same as debt consolidation loans.The is alot of confusion when people are talking about these two. Debt consolidation specifically means that you are putting together every outstanding loan that you have and create a new bigger loan. This involves you to talk presuasive with creditors on behalf of the debt consolidation company you are working with. What the debt consolidation company does is carefully analyzes every debt that the borrower has and segreates them as credit card due, high interest loans and loans that still remain unpaid for quite some time.