Needing Economic Help?For people who are under severe financial stress, loan for debt consolidation may be an excellent option. They offer the economic help required and also prevent grave situations like bankruptcy, lost assets and garnishments. The real test lies in selecting a compatible loan scheme with your financial condition.Only One Monthly PaymentThe refinancing companies offer a variety of plans to help you combine all your debt from varied sources into a single loan with one monthly payment and single point of contact. Besides the standard debt consolidation loan, the debt management companies also offer a secured debt option that varies slightly from the former.Debt consolidation as the name suggests allows you to repay all your creditors the existing debts and combining the entire debt into a single loan. You now have to focus on a single creditor and a single loan.One of the main reasons for people opting for this loan is because of their poor credit record. Among them are people with really dismal credit records. Secured debt consolidation against a collateral are mainly targeted at such people.Collateral? Why?The main reason for associating a collateral with the secured loans is to ensure that the creditor does not end up losing everything that it lends you. Security can include a wide range of things that the loan company deems fit to give you a loan against. This can range from the typical possessions like your house or vehicles to things like jewelry or expensive electronics or even financial tools like stocks and bonds.The first step in getting a secured refinancing is to decide the items that you are prepared to offer as collateral. The next step is to find a good creditor and concur on the terms of the loan. Debt management companies can do this job for you.What You Have to Do BeforeBefore approaching any such company do a background research on them. Typical things to look for are the reputation and their record in the industry. Besides, you can also look for other details like the duration of the loan, interest rates and the payment options that they have to offer. Some companies may provide some other value added services like contacting the creditors on your behalf. Take all these into consideration while choosing your debt consolidation company.Be Caution, but Take Action!Your financial safety can be ensured by a good secured debt consolidation loan. However, it is still a loan and not a gift. Hence, exercise caution before entering into a loan agreement. This is an important decision so take it astutely. You are presently paying several hundred dollars as charges and interests on you debts.A loan for debt consolidation can save you that money. Take action and get out of the vicious debt cycle.