You might still see plenty of ads for them, but bad credit consolidation loans are next to impossible to actually get. If something is as hard to come by as these loans, do they even still exist? The commercials may still be airing due to bulk advertising buys and the websites advertising these consolidation loans for people with bad credit are still out there, but none of this means that you can actually get a loan.

These loans have largely disappeared as a result of the current economic turmoil; you might have heard of the credit crunch and this is a prime example. Banks and other lenders are simply not able to lend to anyone and everyone as they were doing only a few years ago. The state of the economy is actually largely due to irresponsible lending practices, which means that lenders are especially careful at the moment.

This might have worked out OK for the short term, but a reckoning was inevitable and the fallout has impacted almost everyone. Lenders are now so careful about extending loans that even people with excellent credit are finding their loan applications denied. In this climate, consumers with bad credit are out of luck when it comes to getting a loan, let alone a debt consolidation loan.

However, this does not mean that people who have weak credit ratings have no options open to them, even if they have a lot of outstanding debts. They can pay off their debts the (incredibly) slow way, by paying their monthly payments plus anything else they can afford to. However, this can be next to impossible and in the case of larger debts, could take decades. Someone who has a lot of credit card debt or other unsecured debt is much better off turning to a debt settlement program for assistance. These programs are designed to make it easier for consumers to get out of debt, reduce their costs in many cases and allow them to rebuild their credit at the same time.

Debt settlement programs negotiate with creditors to reduce your debt; most creditors would rather get less than the total amount than have you file for bankruptcy and get nothing at all. This can save you a significant amount. You then pay the new negotiated on amount and your debts are marked as paid on your credit report.

This means lower monthly payments without the exorbitant interest rates often charged by credit card issuers. Instead there are monthly payments which are calculated to fit into your budget so you can pay your debts while you repair your credit rating at the same time.

The only problem is finding a debt settlement program which you can trust to help you. There are a lot of different debt settlement programs out there, so look into each to find out what their former customers have to say about them and whether they’ve run afoul of the law or been sued by former clients.

After doing your due diligence, you’ll know who to turn to when you need help. You’ll be able to finally pay off your debts and get back into good financial standing.

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