The best option to relieve you from multiple debts is debt consolidation loans. There are chiefly two kinds of debt consolidation loans: secured and unsecured. Secured debt consolidation loans require you to pledge a collateral, primarily your house, against the amount you want to borrow. The interest rates are comparatively lower since there is no risk to the lender. Consequently, the monthly instalments are small and the repayment duration is long. The amount that you will be permitted to borrow depends upon the value of your house. If you discontinue your repayments, the lender will repossess your house to make up for his loss.

Whereas unsecured debt consolidation loans involve minimum documentation and are thus disbursed quickly. Also, they don’t require collateral to be pledged. But the interest rates are higher because of the risk implicated. The monthly instalments are high and also the repayment term is short.

So debt consolidation loans help you to consolidate all your strewn debts into one single debt. There are bad credit debt consolidation loans also, meant for those with poor or not so impressive credit history. But it is advisable to you to keep your credit record clean by timely paying your instalments.