Debt Consolidation Loans When You Have Bad Credit – Can it Be Done?

Are you thinking of consolidating debt, perhaps credit cards or store cards or just general consumer loans but you have some black marks on your credit file?Even if you have had debt problems in the past, there are many debt consolidation loans that may still be available to you to help you get out of debt.There is almost always some form of credit available to you no matter how bad your credit history is and in fact, there are many companies that specialize in debt consolidation loans to people with bad credit.Generally, because you are deemed a higher risk, you will not be able to get the lowest rates but there will normally be some form of credit available to you.Here are two of the borrowing options for people with poor credit. There are often other options available as well and you should always seek professional help before committing to anything.Secured Loans
The biggest problem for lenders when taking on someone with bad credit is that they may not repay the loan. If you are prepared to guarantee the loan with something (often a house), the risk becomes much smaller for the lender and so you will find it much easier to get debt consolidation loans if you are able to provide security for the lender.This does not mean that you cannot get an unsecured loan; they will just be harder to find.Debt Management Plans
This is another option for you if you are have debt problems and have a bad credit history. It is generally used to try to avoid an IVA and bankruptcy and is much less severe.You will do it through an advisor and they will negotiate a payment plan with your creditors where you pay an agreed amount for a set period and then the debt is written off. Often with this plan, you may not end up paying the full amount that you owe but it will further negatively affect your credit record.