There are two options in order to consolidate the unsecured loans and their bills.One way is that a debtor takes a secured loan to pay for the unsecured loan. In this process he has to put up his fixed property in mortgage. Person, who will provide loan, will offer borrower a repayments plan of debt in small installments with little interest rate applied as compared to the rate which is applied in the case of unsecured loans. There can be a lot of issues with this procedure. If a customer doesn’t own enough fixed property that he can put as security then it will be hard for him to avail this opportunity of debt consolidation. This process takes years to complete so a debtor has to make a management plan of debt repayment for that long. But one can say that it is easy to make and follow that management plan because payments are done in small installments.The other option is consolidating bills through debt settlement. In this method, a customer doesn’t have to pay debts to all companies separately. He will get services of a debt settlement company who will not give loan for debt consolidation. In the case of debt settlement, a consumer doesn’t need to take loan because these companies take a major payment from a consumer and then send shares to each of the lender company. Now the customer doesn’t need to pay to those lenders one by one. These settlement companies will divide customer’s payment in different shares that will be paid to respective organizations. Bills of the client will be consolidated through this procedure. It is easy to do one major payment instead of calculating shares of different companies. Good thing in this method is that nobody needs to borrow any money.In debt consolidation when someone takes loan for paying credit card debt, he is taking another risk. In unsecured debt, risk is on lender’s side but in secured loans risk is at the customer’s side. In this case a borrower will suffer more than a lender if something goes wrong. Like if he is not able to payback the secured loan then he may lose his property. This can make his financial circumstances even worse. So try to avoid such options if you know that you will not be able to manage payments properly.