1. Generally, the phrase refers to debt consolidation; in which the primary debts being consolidated are credit cards. (Debt consolidation is used to lower the interest on payments).
2. Credit card consolidation can also mean the practice of taking a variety of smaller debts at high-interest (credit card balances or otherwise), and "consolidating" them onto a single credit card with a good interest rate.

A lot of credit card companies will try to solicit new business using the second option, which most refer to as a "balance transfer". When you utilize a balance transfer that offers a lower interest rates you have in fact "consolidated" the balances transferred, so the term is correct.

Most of us that are looking to consolidate don't have a good enough credit rating to obtain a new card with a low enough interest rate and enough room to push over the higher interest debts.

If you do - it could be a viable option to consider, but be sure to read all the fine print first. Six months at a lower percentage may seem like a good deal on balance transfers, but if the rate goes up astronomically after that and you'll still be carrying a balance - it's not the best long-term solution. Be sure to look at all your available options carefully, and sit down and do the math not only on the short term, but after any introductory offers expire.

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