If you have a lot of credit card debt or other debt you may be considering looking at consolidation as a method of relieving the financial pressure you may be under. If you have a bad credit history you may think that you have no chance. However, there are many different consolidation options available online that will help you to consolidate your debt. Irrespective of whether you wish to consolidate credit card debt or if your debt is from something other than credit cards, the online search can be very confusing due to the sheer numbers of options available to you and locating the right tool for the right job can be very difficult.

Outlined below are the two most commonly used and widely available options available;

Consolidation Loans:

Taking out a loan with which to consolidate your debt is the preferred choice for many but as with any other type of loan there is certain criteria that you will need to meet in order to qualify for the loan. Homeowners definitely have an advantage when applying for bad credit debt consolidation loans, especially if they have equity in their home.

Home equity loans are frequently used for debt consolidation and were even being provided at levels in excess of a home's appraised value at one time; but since the 'credit crunch' this type of lending is pretty much non existent which isn't exactly a bad thing.

Home equity loans or loans that are covered with collateral are known as secured loans and are amongst the easiest of loans to gain approval for as the lender is in a win - win situation; if you make your payments the lender gets his money back plus his interest and if you fail to meet your commitments the lender gets to keep all payments made up to that point and you're the collateral that can then be sold on!

However, unsecured loans with which you can consolidate your debt are still available and if approved for will eliminate the risk attached with using your assets as collateral. Unfortunately, nowadays, few lenders will approve an unsecured loan to anyone who has a bad credit history, and those that do, do so at extortionate interest rates.

Debt Management Companies:

If you do not want to get another loan or are unable to get one then a company that will help you to manage your debt is your next best option. Debt management companies normally act as the middle man between you and your creditors for which they will charge a fee.

Initially, they will ask you to provide them with all your financial information and after they have analyzed your situation they will sit down with you and go over a repayment proposal with you. Once you are in agreement with the proposed repayment plan the debt management company will then begin negotiations with your creditors to lower, freeze or write off interest rates and therefore lower your repayments.

Once all your creditors have agreed to the proposals the debt management company will distribute your funds accordingly as detailed and you will make just a solitary payment to the company each month or agreed payment period.

Although this is the standardized method that most debt management companies use there are different variations on this process so it is always wise to ask any company you are considering using how they will go about reducing your debt bill.

When these methods are successfully used your debt can be eliminated a lot more quickly as more of the principle can be paid off each time payment is made instead of going towards making interest payments.

It is worth considering using only government backed companies or companies that have a long standing history as both will operate legitimately and in your interests and the monthly fees are small in comparison to what you can save.

You must always be on your guard against new companies that make exaggerated statements about what they can save you as many of these are not legitimate. They may promise you massive savings and much smaller charges but rest assured they will make their money one way or another and not always in your best interests either!

One of the tricks that these companies use is to bank your agreed payment and then withhold payments to your creditors for a month or so, accruing interest for themselves in the process and late fees for your account that are then added to your balance! This type of behavior will cause your situation to worsen and will actually cost you more money.

Taking positive steps to consolidate your debt will provide a massive relief and the burden of debt can soon be lifted, not only will your financial situation improve but your health and home life will too.