A balance transfer credit card is one option for debtors with high interest cards. Financial institutions offer various low interest, no annual fee, and other credit cards with introductory periods. Applying for a balance transfer credit card is one way to reduce the total payment amount. This is one way to deal with excessive debt and learn how to budget. A secured loan is one option for borrowers, and they are usually offered a lower interest rate and a longer repayment term. Borrowers find this solution 
beneficial because more of their payments go toward the principal. High interest charges increase the cost of borrowing and vice versa.
Banks have more stringent criteria than finance companies and typically run a credit check. A secured loan is one solution for borrowers with a less-than-perfect credit score. Financial institutions look at factors such as length of credit history, new credit, debt to income ratio, etc. Excessive debt and late payments show to banks that you are a risky borrower. Banks want to make sure that applicants are able to meet their monthly payment. Your earnings and other sources of income are another factor that plays a role. You may want to list income sources such as your salary, bonuses, commissions, cash rebates, and so on. Look at your debt load and types of credit used to figure out whether a bad credit debt consolidation loan is the best option. Once you’ve made a list of your debts and income sources, contact your local bank or credit union. There are different options to consider, including revolving and installment credit. In any case, this is a viable option if you are about to default. Before you apply, make a list of your debts, including auto, student, and personal loans and credit cards. Before applying, list your expenses such as utilities, transportation, and housing, as well as your outstanding balances.
Consider declaring bankruptcy only after you have exhausted all other options. The IVA is an alternative that allows borrowers to pay a portion of their debts. If you do not qualify for a debt consolidation loan, consider alternatives such as credit counseling, negotiating with creditors, consumer proposal, formal proposal to creditors, and money management.