A whole host of small monthly payment can turn in to a major trouble with in a short span of time. The strangest thing about piling up of various debts is that you would have never imagined while postponing the decision of making repayment, would leave you in such a fussy situation. And now, when you have landed up in this situation you find it inescapable. But, there is always a right way to do it. In order to set you free from the vicious cycle of debts there are debt consolidation loans, designed specifically for the purpose of people having bad credit. Let us find out how debt consolidation loans can befit your specific needs.Bad debts result from recurrent missed or non payments in your previous dealings and are detected from your credit record. Almost every lender does take in to consideration your credit record, in order to ascertain the repayment capability. It implies that if you try to assure the lender of your repayment capability in any other way, then there is a chance of finding nominal interest rates, as well as easy terms.If you are a homeowner, then you can offer your home or any other assets to serve as collateral for the loan amount of secured debt consolidation loans. This is a simple way to get your finances on track. As per debt consolidation loans plan, your more than one debts are combined in one and interest rates are charged on that particular amount. You are not liable to your past creditors, from then on your lender will be dealing with all of them. There is a possibility that you may find discount rates also. To choose the right debt consolidation loans, you need to carry out extensive reach. You can carry your search through online sources and find the best deals of debt consolidation loans.