Dept consolidation is a solution to the many people who are in debt and have no other means of getting out of it. All the debts are calculated together and then a loan will be taken to pay them all off in full. This is the best way to get rid of them for once and for all times.
The next step is to shop for a loan. As you now have a bad credit history you will probably be paying a little more interest than you would have. There are various loans that could be used to pay off your debts, but the personal loan will be very suitable. When you apply for the loan the bank or money lender will ask you to take a secured loan, which means that you will have to secure the loan against your home if you are a home owner. If not you will have to give the lender some sort of collateral that he will approve of. Collateral gives the lender security in case you default in your monthly payments of the loan.
If you did not wish to place your home on the line you could refuse to take a secured loan. You might find the lender refusing you the loan, in which case you could shop around for another money lender to help you. You will probably find one that is willing to give you an unsecured loan but you would be paying higher interest and loan rates.
You will now be able to pay off all your debts and just have the monthly payment of the loan to contend with. If debt is your problem try getting debt counseling so that you will not get into the same situation again.
The author writes articles on various subjects including Debt Consolidation http://www.debtconsolidationfiles.com