Individuals with bad credit are often also in debt and struggling to pay off numerous bills. One option is a debt consolidation program, where the individual obtains a single large loan which is then used to pay off many smaller loans. Having only a single monthly payment allows for easier budgeting.
The problem, of course, is that the individual will find it difficult to obtain a large loan because of their bad credit history. In this situation, individuals often secure the consolidation loan with their home. This, however, usually converts unsecured debt into secured debt with the danger of losing one’s home if the debt cannot be repaid. And, of course, you should never enter into any home loan without first considering the consequences.
There are options other than debt consolidation loans. Debt settlement and credit counseling are other forms of debt help that you may be able to obtain. Each type is unique and has different benefits and consequences. In other words, you should thoroughly investigate all of your options before deciding which form of debt solution is the best for you. Visit the consumer information section for help in making a decision.