If you have bad credit, some lenders specialize in guaranteed consolidation loans. You can find lenders that will offer unsecured personal loans to applicants with credit scores as low as 629. Shop around for the best rates, and consider a lender that allows you to pre-qualify with a soft credit check, which won’t affect your score.

A debt consolidation loan allows you to combine multiple balances into a single, lower monthly payment. It can also save you money in the long run through a reduction in your interest rate. It’s important to remember, however, that a debt consolidation loan doesn’t eliminate your existing debt; it simply moves the balances from one account to another. You’ll still be responsible for making payments on time to avoid late and missed payment fees, which can hurt your credit.

Debt-Free Journey: Understanding the Power of Guaranteed Consolidation Loans

It’s also important to keep in mind that a debt consolidation loan can backfire if you don’t exercise discipline. Make sure you understand your budget and have the funds available to repay the loan without accumulating new debt. If you struggle with spending control, consider seeking the advice of a credit counselor.

A debt consolidation loan isn’t right for everyone, and if you have severe problems with debt, bankruptcy may be a better option. Bankruptcy will ruin your credit score and remain on your report for 10 years, but it can help you reclaim financial stability. It can also be less expensive than a debt relief service, which may pursue more aggressive goals that will damage your credit.