If you have bad credit, then chances are you are having a rough time with your creditors as well as trouble meeting your normal expenses. With such a situation, it is difficult to get another loan and your credit card rating is probably going down. You need something to put the situation under control and that is where debt consolidation loan comes in.

You may fear going for a debt settlement loan because you think it is just adding to your debts but truth is; this is the best solution to your bad debt situation. You will get many companies offering debt consolidation loans with different terms but you need to check them all out to identify a good one. There are many places too you can find them and this will depend on what you can get and convenience.

Private companies offering debt consolidation loans are the majority and as long as they are approved and legit, you can always use their services. These companies offer services at a fee and these will normally vary from one to another.

Services will also differ and the best place to find out the best for you is to search them online and compare their services including service fees. The other way to find them is by asking around from friends and family advice to tell you the ones they have heard of or probably worked with. Debt settlement lenders are usually registered and you can access the local Chamber of Commerce for a list of such companies.

The other good place to get such a loan is through the government consolidation agencies that are there to help people in bad debts. These government agencies offer the same service as the private lenders only that they are free.

Government consolidation agencies require that you make a formal application to them asking for the assistance and if approved, you can proceed to find a way to clear your debts. It is worth noting that it is not guaranteed that your application will be accepted since not all applications sent to them are approved.