December 06, 2001

By: Bev Dodd
Website: http://www.family-refinance-consolidation-loans.com

Bad credit debt consolidation loan: Get help fast

A bad credit debt consolidation loan is often secured by some sort of collateral but unsecured loans do exist. Start correcting your debt with a bad credit debt consolidation loan and a spending plan. We'll discuss this more below.

A bad credit debt consolidation loan is often secured by some form of collateral, usually the family home, but the collateral could be any asset or any property of significant value. Unsecured loans for bill consolidation also exist, but the high interest associated with them may be even greater than your current rates. The main advantage of a bad credit debt consolidation loan is that it allows you to make payments to a single creditor rather than to many creditors and collection agencies that aggressively compete for your limited dollars. Simplification is appealing to many people whose personal finances have become complicated and unmanageable.

Just as you need to know exactly how much debt you have, you need to know your other monthly expenses and how your debt fits into those. If you want to get out of debt, knowing where your money is going is an absolute necessity. Don't call it a budget, but rather a spending plan. Begin by creating a general spending plan, mapping where your money is going and how much you are spending on living expenses, entertainment, and debt. Do this after or before your bad credit debt consolidation loan and you will turn it into a smart financial move.

Remember if you get a bad credit debt consolidation loan and you also participate in a program, where a service negotiates with your creditors or makes payments on your debts for you. Understand whether the service promises to lower the amount you owe or the interest rate you pay, or just promises to lower the payments you make every month, without significantly changing your obligation. Know what happens if a creditor won't negotiate.

For more information on related products and services, please choose from the following menu of items:

Auto loans | Bad credit approval | Consolidation loans | Home buyers | Personal loan online | Refinancing

About The Author:

Bev Dodd is a successful author and publisher of http://www.family-refinance-consolidation-loans.com.  Many have commented that her website offers the best recommendations, links and information on loans, mortgages and financing.