The loan is paid back with a single monthly payment at a fixed rate for a period of 24-60 months.
Video chat male female - Consolidating your debt with bad credit
The new loan is a chance to lower monthly payments or find a cheaper interest rate.
But qualifying for a new loan with bad credit is tricky.
In many cases, having multiple credit accounts in good standing can improve your score — but, when you fall behind on one type of debt, it can strain your ability to keep up with the rest.
For some, a good way to get a handle on their debt is to get it all in one place through a debt consolidation loan.
We asked the experts to find out the best types of loans for consolidating debt for people with poor credit.
RATE SEARCH: Get Cash Using Your Home Equity A debt consolidation loan is a personal loan that pays off multiple debts, such as credit cards and student loans.
What lenders are looking for: Any reputable lender will check your credit history and ask about your income and debt when deciding whether to offer you a loan.
Your credit history directly affects the interest rate you are offered, and so does your ability to repay the loan.
You have a mound of debt and you’re not sure how to repay it.
You’ve considered taking out a personal loan to consolidate the debt, but it’s hard to find debt consolidation loans for bad credit.
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