Debt consolidation loans enable one to pay off all his debts in one go. It is an option to merge all debts, be it multiple credit cards or other kind of debts. To put it in simple terms, it is one payment against multiple payments to pull a person out of a bad credit situation.As the market is overflowing with credit cards, many people have got into the habit of keeping multiple credit cards. Those who do not balance their earnings and expenditure easily get into a bad credit situation. To avoid this, one should sign up for a credit card that suits his needs, keep track of his purchases and expenditures, reimburse the credit card bills in full each month and ignore offers from other credit card companies.To avail a debt consolidation loan, one needs to meet the basic criteria just like any other loan. Debt consolidation loans [http://www.adverse-credit-debt-consolidation.co.uk/debt-consolidation-loans-in-uk.asp], too, can be classified as secured and unsecured loans. As the name suggests, a secured loan requires security, whereas an unsecured loan does not. A secured loan is preferred for its low interest rate and flexible repayment option. On the other hand, an unsecured loan is best suited for clearing smaller debts, as the rate of interest is high. For this loan, the borrowers present income and repaying capacity matters. It is wise to keep the loan period short to cut the risks and make tension free repayments.A debt consolidation loan can convert high interest rate debts into a new low interest rate credit. The key point to remember is that the debt consolidation loan must have a lower interest rate, as compared to the rate of the debts put together. Consolidating debts can provide great support. However, before availing any loan, do ample research and be cautious.