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Perhaps you have heard of the term Consolidation loan. But what it is? What is bad credit? Do you need it? Who can avail it? Here are the answers to your questions. Imagine a person has so many loans that he feels burdened to pay many loans every month. In this case he can avail for a debt consolidation loan, where he can pay back the loans to all creditors and just have a single loan with lower interest rates and continue repaying to a single union or bank. Thus now he has only one loan and one payment to the financial organisation hopefully at lower interest rates than his previous loans. If you have a bad credit you can make use of this debt consolidation loan. So this is not a final settlement to your debt problems but a temporary solution which helps you to target to a single track. Anyone can avail a debt consolidation loan. There are two different offers for availing a debt consolidation loan. One is Secured loan and the other is unsecured loan. As name suggests secured loans ask you to give some collateral as the security of the loan amount issued by the creditors. That collateral may be a Home, a car or any asset you have. In this case you will be offered with lower interest rates, larger and easy repayment terms. But you should be careful here, because your asset is on the risk if your payment is not made at the right time. The next is the unsecured loan. Here you can avail a debt consolidation loan even if you do not have any assets. But here if you have bad credit it would be difficult for you to get it. Any case you must be careful of the terms and conditions before you sign the agreements. Look out for the organisations that offer lower interest rates. Possibly non profit organisation can offer for lower interest rates than other firms and this would be a safer part for you too. But when you do not get a non profit organisation just be sure that the company is involved with either, The Association of Debt Settlement and/or Internal Association of Professional Debt Arbitrators (IAPDB) or both. This is important because you should not jump into an ocean fearing for the river. For information you may look at the site links mentioned below: http://creditcardconsolidationadvice.com/bad-credit-debt-consolidation-loans/ http://creditcardconsolidationadvice.com/consolidation-loans-for-credit-cards/
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