Bill consolidation loans are personal loans that are used to repay high interest credit card bills and any other high interest loans or bills. They are also referred to as debt consolidation loans. Many debtors opt for bill consolidation loans for repaying their outstanding credit card bill payments. Though, some debtors avoid going in for debt consolidation as it reflects on their credit history. Bill consolidation loans are of two types namely, secured and unsecured bill consolidation loans. Unsecured bill consolidation loans have a higher rate of interest due to the absence of any collateral.Typically, bill consolidation loans generally combine all the outstanding debts into a single loan. The debtors are supposed to make a fixed monthly payment to the consolidating company. This payment is then distributed among various creditors. They find it more convenient to pay off one loan rather than paying all the bills individually.There are various kinds of bill consolidation loans. Each loan is designed to suit various needs of debtors and their financial status. Debtors with a good credit rating can qualify for an unsecured personal debt consolidation loan. It is advisable to check the credit score before applying for this kind of loan. Higher credit scores can increase the chances of a debtor to qualify for a low interest loan.Debtors can consult accredited credit counseling agencies to guide them to choose an appropriate debt program. The debt consolidating company will negotiate lower rates with the creditors for a small fee. A few non-profit agencies have the expertise to deal with debtors with six or more months of late payments.Before deciding on any consolidating company, debtors must research and compare pay back dates, fees, and estimated monthly payments of various companies.Unsecured loans require less time to process the loan because it involves less documentation. In most cases, a debtor is not asked to give a reason for applying for the loan. However, most consolidation companies set a limit on the amount that can be borrowed through an unsecured loan. Debtors, who wish to borrow beyond this amount, may have to go for a secured loan.