When looking for a loan agency which will help someone with bad credit when it comes to debt consolidation you need to understand exactly how consolidation works, and what it can do for you.
Then you will be properly able to decide whether the company will be accepting of your situation or not.
What is debt consolidation? Debt consolidation is an agreement between a consolidation agency and a client, to help the client turn their many different overdue debts, into one simple and easy to pay off debt.
How does the process of debt consolidation work? Consolidation works by you the client having a one on one meeting with a consolidator to discuss exactly how much is owed to each debt company which is charging you each month, this is to decipher exactly how much of a loan you need to pay off all of your debts.
Once this total amount is assessed if the company only accepts secured loans, or you would prefer a secured loan due to the lowered interest rates, the company will require you to sign over a personal asset of equal or greater value to the total loan which you are taking out with the consolidation company.
Then the company will pay off all of your debts and create a single payment plan to be paid towards your loan each month, which works with your salary and your total needed living expenses each month.
What companies accept clients with bad to severe credit? When applying for a consolidation loan you must have missed a significant amount of payments, and be in such a terrible position that you would not be able to pay off all of your debts properly without consolidation.
This meaning you would already have damaged credit to qualify.
You see, people with good credit show that they are capable of making timely payments towards their debts, if they can pay their debts what would they need a consolidation loan for?