There are various other ways available to eliminate your personal debts such as, through mortgage, re-mortgage, bankruptcy, individual voluntary agreements etc. But, the bankruptcy and IVAs are not recommended as they are considered as bad for the individuals credit history. On the other hand consolidating debts through a loan or mortgage can help a person’s credit score.

Before applying for a bad credit loan, the borrower should ensure to obtain a copy of his credit report from a repu...