Credit debt consolidation means taking single secured loan against collateral, such as a house or a car to pay off your long pending debts to different lenders. As such, the debts are consolidated into one loan, which can be paid gradually or consistently rather than at different stages. This option generally used by people to arrange payments towards credit card debts, student loan etc. The credit card debt consolidation option can even be worked out, if you have good credit rating with no assets, but you should qualify for such an option.Availing Credit debt consolidation loan is definitely better way to meet your loan liability. But people should have regular income for their day to day expanses otherwise one can land into a situation of no return on account of accumulating loans and paying high interests thereof. It is on account of these reasons it is better to take proper counseling before taking such loans so that Credit debt-consolidation loan are utilized in true sense of the word to wipe off your debts by paying lower monthly installments. But always ensure not use this money on your luxuries. This option, in fact is meant for people with heavy outstanding who normally from their regular income are unable to pay their monthly loan installments. First, you should try to explore obtaining unsecured loan based on your credit scoring, but if you find yourself ineligible then only you should opt for a loan against your assets. In a way this is an appropriate way to get rid from paying high interest on your loans and additionally providing tax benefit If you can not are not eligible for unsecured loans or have no equity in house or automobile, still you can go for debt settlement or seek credit counseling. Like wise for Credit card debt consolidation, you can apply under Credit debt consolidation option to pay off your credit card out standings. You can consolidate all your credit card debts and pay off.Bad credit debt-consolidation situation arises when you have multiple credit cards and use all these cards without realizing that at end of the month you have to arrange payment for the cards from your monthly salary cheque. It is on account of this reason you fall into a trap and have to shelve down heavy interests on your spending and you land in a situation when you are not able even to pay interest not to speak of principal. Thus your bad days starts with accumulating interests month after month and thus making you to go through bad times. It is under such conditions the Bad credit debt-consolidation can be helpful.