The government does not offer or approve debt consolidation loans, relief options, or forgiveness programs for private obligations in a direct fashion. However – federal and state agencies enact laws that regulate related activities.

People who owe large sums on their credit card, mortgage, or hospital bills will benefit from knowing the consumer protection rights that they have.


Many consumers consider applying for an unsecured personal loan online to consolidate deferred deposit transactions. Doing so may lower projected annual interest rates, and temporarily relieve payment pressures from these expensive short-term contracts.

Be careful! You are trading one problem for another.


Personal loans can help borrowers consolidate high-interest debt into a more affordable, lower monthly payment, and stabilize finances – if you can find a lender willing to approve your application.

People with bad credit find options very limited. Investors shy away from lending money to candidates with poor qualifications, and difficult demands.


Important information about debt consolidation loans includes the possible effect on credit scores. The consequences are both good and bad depending on behavior after the lender disburses the funds.

Get advice from multiple perspectives before buying a house or closing credit cards. Consumers dealing with wage garnishment may be disappointed.


Consumers seeking advice about debt consolidation frequently want to know how a particular program will affect their credit score. Sometimes the impact on ratings is important. Other times it does not matter.

People suffering financial hardship often find that the impact of a debt settlement program does not matter. Their score is already too low to qualify for a new loan and will not recover anytime soon. The opportunity for lasting relief is far more important.


Online debt consolidation loan information often promises things the source cannot deliver. Combining your obligations into one convenient lower monthly payment sounds very appealing.

Unfortunately, consumers most in need of this type of relief rarely qualify. The large amounts of unpaid balances push down their credit score and boost their debt-to-income ratio. Neither is good.


Reliable debt consolidation information is very hard to find. Low-income earners may find it especially difficult to identify trustworthy lenders and resources.

Borrowing money requires a steady job and reliable source of income sufficient to cover your new obligations, along with your everyday living expenses. You may want to explore other options.


Find the critical information you need to know before applying for a debt consolidation loan to retire any collections accounts. It may be difficult to find a willing lender, and it may not make the most sense.

Explore the advantages and disadvantages of settlement and management programs before completing your application.