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Debt consolidation involves taking multiple bills, such as medical bills or credit card debt, and combining them into one payment through methods like a second mortgage, unsecured loan, or high-interest consolidation services. However, this does not solve the underlying issue of overspending and lack of budgeting, leading many to continue in negative financial habits and accumulate more debt. It is mathematically unwise to consolidate low-interest debts into a high-interest loan. Borrowing more money does not solve the root problem of overspending.