If staring at your monthly credit card bills makes you hurt a little inside it may be time to consider a bad credit debt consolidation loan.  You have quite a few options when it comes to getting a debt consolidation loan with bad credit.  There are secured loans, unsecured loans, and companies that will do all of the work for you (I know that's not a loan, but it's still a viable option!).  We'll look at each of these in some detail so you can better understand your options and what you can qualify for.

Debt consolidation is the act of taking all of your bills and paying them all off together with a lump sum of cash.  Before looking into loans, you should contact all of your creditors to see if they are willing to negotiate your debt amount.  Many times they'll be willing to waive some of the penalties and fees in order to get your entire debt in a lump payment.  This can significantly reduce the amount of money that you need to borrow.  Also, the total payoff amount may differ from the balance on your monthly credit card statement, so be sure to clarify that before applying far a debt consolidation loan for people with bad credit.

The secured loan is the easiest to figure out if you qualify for bad credit consolidation, either you own a home or not. There are other things that can be put up as collateral, but if you own your own home you'll almost always be approved. Keep in mind that if you miss a payment, the bank can sell your home as payment on your loan. Don't mess this up!

With a secured loan, it's not a huge deal if you apply for a little bit more money than you need to pay the loan. The interest rates on secured loans are much lower than their unsecured counterpart. Either way, don't go crazy borrowing money because you still need to pay it back, or you'll lose your home.

This is where things get much trickier and expensive. An unsecured debt consolidation loan with bad credit is hard to get, and if you do, the interest rate is going to be extreme. There are companies that specialize in giving loans to people with bad credit and they're a good option for someone in this situation. They offer all sorts of high-risk loans and charge a much higher rate for them. The high interest can be offset by strong negotiation with your creditors to reduce your total debt.

Another option to resolve debt, which is much harder in this economy, is to apply for a loan with a credit union. The key here is that you can speak to someone who actually cares a little bit and might be sympathetic to your situation. Explain to them your situation and what you're trying to achieve. If you can turn on the waterworks, you only increase your chances of getting approved. Bring with you as much evidence of what you're doing as possible. Any sort of debt settlement letters, or anything that will show that you are working to make this right will only improve your odds of getting approved at a much lower rate than it would be with a high-risk loan company.

If you can't get approved for any loans you may want to contact a credit consolidation company.  They will take on your debt and you make payments directly to them rather than to the credit card companies or the bank.  There are a few non-profit consolidation companies, but most of them will charge you a fee for their services.  The fee is certainly manageable and they'll work with you to create a monthly payment that you can make each month.