You may look for effective ways to get back on track when you are finding it difficult to make arrangements to pay off your monthly bills on time. Your financial condition and the credit score is not good enough and you are rejected by banks and credit unions for granting you a debt consolidation loans, you are termed as bad credit. You will find it difficult to get a loan, but you do not have to think that all is lost for you. If you know the right place to look, then you will come across many lenders who are still willing to lend money to people with bad credit.

Banks And Credit Unions

Banks and credit unions are the first place where people who have bad credit contacts to have debt consolidation loans. It is based on the simple principle that it is better to do business with people or institution which is already known and trustworthy, but the credit report and your financial situation may result in the rejection of your application. It might be very disappointing for you to get turned down by those people whom you knew or did business with but it is all about policy, principles, terms and conditions of the banks and credit unions that they refrain from people who have bad credit.

Debt Consolidation Lenders

They are the best place to go if you have bad credit. They use the risk-based pricing model which is similar to the bank to find out the potential risk involved and then calculate the amount, rate of interest and much more. They will offer you different types of debt consolidation loans for bad credit profiles. You must understand the difference in workings of all the different options, how much to pay each month, the rate of interest and the fees involved and the time of the loan.

Consumer Counseling Agencies

These non-profit agencies also offer loans to people with bad credit. As they are also counseling agencies, they will offer you useful advice regarding your financial situation, suggest you more practical ways to get out of it and help you negotiate with your creditors for better interest rates. They may find out another way to pay off your debt as well. It is needless to believe that they will not charge any fees as non-profit earns that they do not pay taxes for the money they make.

Debt Relief Companies

Debt relief companies can also provide you with the necessary loan to pay off your existing debts taking into account your needs and the specific financial situation. They can offer you various debt management plans to help you out from the sticky situation. They may also suggest debt settlement options where you create a fund in an escrow account, and within this time they try to negotiate with your creditors for a lower settlement amount and once the required amount is reached, your debt is settled. But it is always advised to know about the company whom you would work with, see their ratings, read their reviews and check their success rate before you sign a contract.