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If you go to a bank to consolidate loans, they will check your credit score. If your score is too low, the bank most likely will turn down your loan application. Another option for debt consolidation with bad credit is peer-to-peer lending.

Getting a debt consolidation loan when you have bad credit can be tough, especially if you seek help from the wrong source. While your bank or credit union may offer various consumer loans for debt consolidation, it's possible you won't qualify if you have blemished credit.

The way debt consolidation affects credit depends on the various options one choose. If one consolidate by taking a consumer loan to pay off with credit cards, utilization ratio could go down, causing your score to go up.

Holding several cards means paying several monthly bills each with a separate, and often high, interest rate. To lessen the burden, and pay off debt faster, many consumers consolidate all balances onto a single card.

Unlike debt settlement, the fees for debt management are somewhat predictable. Usually you will pay a monthly fee of between $15 and $50 to the debt management company or government approved credit counseling agency that is in charge of your debt management plan.

Unlike debt settlement, the fees for debt management are somewhat predictable. Usually you will pay a monthly fee of between $15 and $50 to the debt management company or government-approved credit counseling agency that is in charge of your debt management plan.