If a pile-up of debt has grown so much that it is now threatening to ruin your life, then you must start making extra efforts for eliminating these old debts. One of the most effective solutions of the debt problem is to opt for low interest debt consolidation loan. A debt consolidation loan means the borrower wants to pay off debts through the loan amount either himself or asks the new lender to do so on his behalf. While debts have been cleared, still the borrower owes to the new lender almost the same amount equal to debts, as the debts are now consolidated under the new lender. There are host of benefits for the borrower in doing so.