One of the worst things about falling deeply into debt is dealing with multiple creditors.
There's too many accounts to keep track of, a stack of bills on your desk each month, and if you fall behind, a steady drumbeat of phone messages from creditors who want to be paid.
You'd think that the amount you could borrow would be the same, since you still have 00/mo.
Your mortgage payment would be 00/mo., so your debt ratio would be 00 00 = 37.1%, so if you bank allows a debt ratio of no more than 38% then you just squeaked in.
In these circumstances, debt consolidation may be helpful. There are two main debt consolidation options: debt consolidation by taking out a loan, and debt consolidation programs such as those offered by American Consumer Credit Counseling (ACCC) that do not require you to borrow.
One common approach to debt consolidation involves taking out a loan.
In recent years, peer-to-peer (P2P) lending opportunities have increased the options for people looking for a debt consolidation loan with bad credit.
P2P lending bypasses the banking loan system and allows regular people to organize loans between one another, usually through a website.