If you have bad credit, why are you looking for another loan? Bad credit consolidation loans are not the answer. In today’s economy, people with high credit scores have a hard time getting loans. Any loan you’d manage to get with bad credit would likely have sky-high interest rates.

But just because your credit isn’t perfect doesn’t mean you can’t consolidate your debts and start working toward becoming debt free. You just won’t do it with a loan. Debt settlement and credit counseling are options that do not require good credit and are not loans.

Credit counseling involves a debt management program that consolidates all of your unsecured debt into one account. You make one payment per month to the credit counseling organization and they disburse it to all of your lenders. Your lenders work with your credit counseling organization to lower your interest rates and waive your fees. They require a payment of 2% each month and possibly take the 1.75% as a hardship.

With the interest rate reduction and the 2% payment, you will be debt free in about 5 years. And the best part is that your credit won’t be ruined. If your credit counseling company can’t enroll you in one of their plans, they refer you to trusted people or organizations that can help you. They even have resources that can help with mortgage problems.

If you find yourself in a situation where you just don’t know where to turn, fill out the online form and a credit counselor will contact you. They will be happy to answer your questions without forcing you to do anything.