Debt Consolidation Companies
Finance Companies

Like banks, finance companies are in the business of lending money. Their standards however are much lower than those of banks.

The good news is that this means you may be able to get a debt consolidation loan from a finance company. The bad news is that, because they make loans to so many poor credit risks, you'll pay unbelievably high interest rates -- sometimes up to 40%.

And while banks are willing to work with you to make other arrangements if you can't make the payments you agreed to, a finance company loan usually includes harsh penalties if you miss even a single payment.

You may be asked to put down your car or some other valuable possession as collateral, and if you default, you may lose that possession.

You will find yourself constantly harassed by their collection departments and may even have a portion of your wages used to pay off the loan.