Can you get debt consolidation loans with bad credit? Absolutely. Of course, whether or not you want one of these bad credit loans is an entirely different story.
Regardless of the state of their credit, most people who are in debt and seeking a solution look to a debt consolidation loan for the answer. Why? Quite frankly I'm not sure. Perhaps because they don't know about any other options. But the bottom line is that you don't solve your debt problems by taking on more credit/debt. So if you are in debt, and you have bad credit, don't get too worried if you are having trouble getting a debt consolidating loan. There are other, better options to consider anyway, and we'll touch on these in a bit.
Chances are that if you have been searching for a debt loan you have seen an advertisement (or two) like this. And even though your "spidey-senses" start to tingle, you figure it is worth checking out the offer because hey, you have bad credit and you could sure use a $15,000 debt loan.
The problem is that these ads are little more than a bait and switch
tactic. Their purpose is to suck you into thinking you will get a $15,000 debt
consolidation loan with bad credit, when in fact what you will be sold
is more in the neighborhood of a $1,500 loan with a term and interest
rate that are along the lines of a payday loan (ie. short term and extremely high
interest rate). So how can these companies get away with such offers? Well, they do
offer loans up to $15,000, but to borrow that much you need excellent
credit. The poorer your credit, the less you will qualify for, and the
greater the interest rate you will be charged.
The lesson here is just to steer clear of these offers. Instead, you would do yourself a tremendous favor if you looked into your other debt relief options.
As I mentioned above, there is absolutely no reason to panic if you cannot qualify for a debt consolidation loan. In fact, consider yourself lucky! Yes, I said lucky. A debt consolidation loan is not the answer for most people looking to get out of debt anyway. There are other, better options that you can implement regardless of whether your credit is good, average or poor.
For example, the easiest and most effective thing you can do to help yourself get out of debt is to set up a budget that allows you to live within your means and set aside money to pay down your debts. And anyone can (and should!) do this. If you need help with this you can speak to a credit counselor (the initial consultation is usually free) who will not only assist you with your budgeting, but who can also conduct a thorough financial analysis for you and offer advice on various debt relief programs.
So forget about debt consolidation loans with bad credit or good credit. And instead, start focusing on preparing and sticking to a budget so that you can begin to pay off your debts without a new loan. Believe me, you will be much better of in the long run.