It usually happens that people take more loans than they can handle. This naturally leads in repayment failure. When such defaults make your life trouble some, debt consolidation loans are there to back you up. Debt consolidation loans are those loans taken to repay all your debts. Through the process a single loan is taken for a huge amount in order to pay off the multiple smaller loans. In brief, all your debts will get united into a single loan, and you will have to pay to only one creditor. This loan may offer lower interest rates than what you were previously paying, or a longer repayment term. This will make it possible for you to manage your monthly outflow effectively.Both secured and unsecured debt consolidation loan options are there. You can choose either means for consolidating your debts. Unsecured debt consolidation loans demand no collateral hassles. Also, unsecured debt consolidation loans can be availed in quicker times. But the interest rates will be very high. The rate of interest will be very low in the case of a secured loan since something valuable is being pledged as collateral.Bad credit debt consolidation loans are there for poor creditors. So even if you are having a bad credit history, it won’t be hard for you to find out a debt consolidation loan. The interest rates will be very high in these cases, even though monthly payments will usually be low. Also they may have to face an additional upfront fee that may come to around 10% of the actual loan amount. Consolidation programs are mainly debt relief programs. Most often they consolidate unsecured debts arising from multiple sources like credit cards, student loans, personal loans and the like into secured loans. Usually the majority of the debit consolidation loans are really home equity loans and the like.Since you will find a whole lot of debt consolidation firms, choosing the right firm is of great importance. Be very vigilant to skip dishonest and treacherous tactics which you are likely to encounter in such a deal. These firms provide debt consolidation, consolidation of credit cards and mortgages, refinance, debt relief and a lot more of the same genre. These are accomplished through debt agreements and arrears consolidation services. One can find online debt consolidation services too. For those having a good credit report background, the interest rates on personal loans vary between 14 to 15%. And obviously the interest rates for bad credit holders will be a bit higher. And so mending your credit history thoroughly matters.Once you have decided to go for one, you are supposed to give your debt consolidation firm the necessary debt and finance information. The firm then calls your creditors and negotiates on your behalf. These lower rates are pre-set by creditors. Usually, the firm can negotiate lower monthly payments, lower interest rates, and reduce or eliminate late fees. This makes it possible for you to pay one, lower bill and pay off your debts in lesser time. As return for this service, you must agree to pay, on time, the already agreed lower payment while meeting other living expenses. Another important condition is that you must stop increasing your debt or using credit cards. When the thing that you are working with debt consolidation is made known to your creditors, you will no more be receiving any harassment from them. Your debt consolidation firm will settle everything with your creditors.