Debt consolidation is a financial tool that many people are interested in due to the current and possibly distant future state of the economy. There is a great deal of information and disinformation that is prevalent on both the internet and even in financial magazines. Some of the disinformation is simply from individuals that are unaware that they are spreading groundless rumors. Other types of disinformation are due to malicious individuals with shady business practices.The reason people might feed disinformation to others is varied. The prime motive, however, is money. These individuals will either try to steer people away from consolidation loans so that they can give them specious financial advice or they will quote nearly impossible loan services with practically non-existent interest. In the latter instance these same unscrupulous individuals will generally have a great deal of fine print in their contracts. At one point or another their extraordinarily low interest rate will suddenly change into a much higher one. They’ll cite the fact that it was within the contract. The individual will be forced to pay or they might end up in a lawsuit.At any rate a debt consolidation loan for people with bad credit is a practice that can be quite beneficial financially if it is garnered through an honest, trustworthy, lending agency. The positives of such a financial resource outweigh the negatives heavily. However, there are a few negatives to keep in mind.The positive aspects of a debt consolidation loan for bad credit include paying off the original debts the individual owes. This can increase their credit rating over time. They will also change their payment style from several outstanding payments per month to different organizations to one payment to a singular financial entity. The former creditors will stop harassing the individual at home and abroad. The interest rates on a legitimate loan for bill consolidation are actually quite low and allow for an individual to completely pay the loan off in only a few years in many instances. If settlement negotiations are involved then the overall amount paid might actually be cut in half or lower overall.The negative aspects of this practice are two fold. The individual might take a small credit hit from closing off so many accounts at once. However, if they happen to have bad credit already this minor hit hardly matters and it is easily repaired after the debts are taken care of. The second negative aspect mainly comes into effect only if the individual has contracted with a less scrupulous company. The variable interest rates on these types of loans might vary quite a bit and never in a lower amount.