Let me first ask you this. Even if you could find a debt consolidation loan with bad credit, why would you want one? The chances of such a loan ever helping you get out of debt are slim to none. And I have my money on none.
You say I'm wrong? Alright, tell me why you think getting a bad credit debt loan will help you get out of debt...
You say... "If I can just consolidate my debts into one loan, and make one payment each month, I know I could finally get on top of my debts."
I say... "Not likely. It's not the fact that you have 3 or 4 separate debts that is the problem. The problem is you aren't making the tough decisions in your life that you need to, and taking the necessary steps to pay off your debt. Having only one payment won't help you cut back on your spending and live within a budget."
You say... "If I can get the interest rates I am paying lowered through a debt consolidation loan it will help me pay off my debts faster.
I say... "Perhaps. But even if you could secure a debt consolidation loan with bad credit, the chances of the interest rate on that loan being much less than what you are paying on your unsecured loans now is remote. You see, the 'risk' portion of an interest rate increases dramatically if a loan is unsecured and increases even more if the borrower has poor credit."
You say... "Even if I get a debt consolidation loan with bad credit and 'not a great' interest rate, at least my monthly payments will likely go down."
I say... "That's because the term of the loan will be quite long. In other words, you may end up taking even longer to pay off your debts and pay even more in interest charges than if you hadn't consolidated your debts. But sure, I'll concede that your monthly payments might decrease, although that isn't necessarily a good thing."
You say... "If I can get a big enough loan, I can pay off all my other debts all at once."
I say... "No you can't. You aren't paying off anything. You are merely 'shifting' your debts and taking on more credit than you had in the first place. Most people that do this end up even further in debt. (They pay off their credit cards, and then proceed to run up the balances again over time leaving themselves with a debt loan and credit card debts.) Besides, if you have any significant amount of outstanding debt right now, you are going to have a heck of a time borrowing any significant amount of new money, even if you had good credit.
You say... "If I am able to find a debt consolidation loan with bad credit (even if the terms and interest rate aren't great), at least my credit cards will be paid off."
I say... "Refer back to my previous answer...
you cannot borrow your way out of debt.
And once your credit cards are all paid off, the chances of you racking them up again, is high. In fact, many people who pay off their credit cards with a new loan, end up a few years down the road with the same balances on their credit cards plus the loan they took out a few years earlier to pay off their credit cards in the first place. DISASTER."
Look, forget looking for a debt consolidation loan with bad credit. You are much better to consider other debt relief options. Remember what your real goal is anyway. ie... To get out of debt. Your goal is not to lower your interest rates or lower your payments. It is to get out of debt. Sorry if I'm sounding like a broken record.
You need to analyze your finances in detail, prepare a thorough budget, live below your means, and focus on paying down your debts. If you need help with this that's alright. Speak to a reputable credit counseling agency. (You can find one online or locally within your community if you prefer to meet with a counselor face to face.) They can help you get your financial house in order and prepare a budget. If necessary and appropriate, they can also show you other options that can help you get moving towards your goal, which is of course, to get out of debt.
To summarize... forget about getting a debt consolidation loan with bad credit and instead focus on getting out of debt.