The loan market views a combination of bad credit and debts as synonymous with unreliability. How can one trust a person who has bad credit in his name and is heading towards another? This is what lending agencies have to say of bad credit debtors. Nevertheless, there is a divergent school of thought, which believes in giving a second chance to the people. They reason that keeping these people away from loan assistance will certainly toss them in the throes of County Court Judgements and bankruptcy. And that serves none.Lenders, though cautiously, have taken up the view expressed by the other school. Bad debt consolidation loan is the result of this. Bad debt consolidation loan advances funds to the bad credit borrowers to help eliminate their debts. Large amount of debts, which would otherwise appear difficult to settle, can be easily done away with through these loans. And while you have to think if your income is sufficient enough for the debts, with bad debt consolidation loans one gets access to the large coffers of the lending agencies.But lenders have not let their guards down completely against the bad credit debtors. They still have certain checks to ensure that the borrower does not return to his old ways. Strictness in terms at which bad debt consolidation loan is offered is one such check. You get to pay a higher rate of interest. If you are looking forward to a bigger funding through these loans then forget it. Also, the repayment period will be much lower, around 10 years.Are you finding this biased? Have a look at your state of affairs. And then compare it with a person who you know has been adjudged with good credit. You would surely tone down your expectations after this comparison. The risk factor involved in lending greatly influences the terms that a borrower receives. To study risk, lending agencies will prepare a credit score of the borrower. Those with a credit score below 600 are thought of as bad creditors and thus get loans, depending on their circumstances.However, what changes in terms be considered reasonable and what as excesses of the lender still needs to be defined. It has been seen that lenders charge much more from bad credit borrowers than what is reasonable and standard. This is because large banks do not help and the small lending agencies start profiting from the ignorance and urgency of borrowers. This can be avoided by undertaking proper research on the market for bad debt consolidation loan and keeping patience.