Help for bad credit debt consolidation

Yes, people who have a credit history that is less than sterling can still get debt consolidation loans. Just like any loan, however, an applicant must qualify for a loan. The applicant must have enough personal property as collateral that can be used to secure the debt consolidation loan. That property can be in almost any form, but the one that is most often used is home equity.

If the applicant doesn't have any home equity to pledge as a loan guarantee, he might use clear titles to automobiles or boats or other such property. But the bottom line is, that collateral is a requirement for obtaining a debt consolidation loan.

When a person gets a credit card, there is no collateral required. The applicant simply signs their name and agrees to repay the loan (and YES, IT IS A LOAN) with interest. The credit card company isn't holding the title to a home or a car as a guarantee that the loan and the interest will be repaid. This is what is called an "unsecured" loan, and all credit card debt is unsecured debt.

It isn't hard to destroy a good credit rating when you have more debt than you can manage. Payments are made late (or not at all) and the credit rating goes down the toilet. For this reason, many people who apply for a loan do not have very good credit. They have bad credit, and they must apply for a bad