What is Debt Consolidation?Debt Consolidation is a means by where you can take all of your existing loans, credit card payments and outstanding bills and consolidate them into one loan. This loan is spread over a term that will enable you to comfortably afford to pay the set monthly amount. This way you know exactly how much you need to pay and have only one monthly payment going out of your account each month.The hardest thing to deal with when you have many different outstanding debts is not being able to keep track of each debt as they all come out of your account at different times of the month and they are all for different amounts.What is a Bad Credit Debt Consolidation Loan?A Bad Credit Debt Consolidation Loan is much the same as a consolidation loan but the difference being that the origional debt was defaulted on in some way, thus putting the candidate in a higher risk bracket.However this is not a problem as banks and institutions are willing to help you out with a bad credit debt consolidation loan and get you back on track with your finances.Bad Credit Debt Consolidation Loan or Bankrupcy?Making a decision on which option to take in order to be debt free should not be taken lightly. This should always be discussed with your bank, financial advisor or a debt counselor. To help you in your quest, there are a few points I would like to make.Bankrupcy should only be taken as a LAST option. Yes, to go for bankrupcy would be the fastest and easiest option in the short term but you need to remember that it will be held on your record for at least seven to ten years. This will affect any credit or borrowing during that period and possibly afterwards too. So it is a short term fix but will be a long term problem.A Bad Credit Debt Consolidation Loan is a good solution all round. It allows you to initially gain control of your debt and then manage it in a responsible manner. There is however still the issue of how you came to lose control of your finances in the first place and this needs to be addressed to avoid a repeat performance in the future. There are many companies offering aid for this service and many offer free advice, so it’s definitely worth getting advice from a qualified debt counselor. They will also be able to advise the best place for you to apply for a Bad Credit Debt Consolidation Loan.