Debt Consolidation Loans

Okay, maybe someone can help me with a few questions, or at least point me in the right direction. I have already done the free phone consultation, and at the time, I don't believe it's right for my current situation. I have about a 664 credit score. I have absolutely 0 accounts in collections, 0 late, 0 pay-offs, etc. etc. My credit is pretty much clean. The thing really hurting me score is the amount of unsecured debt I have, and how high the balances are. I have about $15,000 in credit cards, $64,000 in student loans, and about $16,000 in unsecured personal loans.

I am currently NOT behind in any of my payments yet, but in order to keep my payments on time, I had to resort to PDLs, and that's how I got involved in that whole PDL mess. Altho the consultation said they could help me with the credit card debt and only $2600 of my personal loans, I am just not ready to stop paying my creditors and screw up my credit. Yes, the score is already hurting because of all the debt, but my payment and account history is perfect.

So if debt settlement and/or consolidation and credit counseling are currently not my answers to the problem, what about a debt consolidation loan? Can someone explain a little more info about that to me?

The consultant suggested I try my own bank, but I have had a Bank of America account for over 10 years and despite some overdraws before, I have never owed them money or anything, and they still do SQUAT for me. it was like pulling teeth just to get a small credit card from them, and it took 9 years just to get that on my limited credit history.

So an anyone give me any suggestions or information about debt consolidation loans and maybe what and where to look for? I have been turned down my American General and other companies numerous times, and that's how I've gotten stuck with crap loans through crap companies like Cashcall, QuickClick loans, and First Bank of Delaware. I already have 2 Prosper loans, which have already been used to pay off other crap loans.

Are debt consolidation loans easier to get? Or am I going to run into the same walls as any unsecured loan?

Any information would be greatly appreciated.

Wanted to add that in my situation- I do not own a home, but I do not pay rent, either.

Also, I went in for an interview today. I already work 40 hours a week, but I am trying to get a second job so that I will have more income to start paying down my debts and stay out of the PDL loan trap for good.

The concept of the debt consolidation loan is to replace all the existing high interest loans with a single big loan with lower interest rate. Often, if not always, an asset, used as collateral, can help you in managing better deals in terms of interest rates. Getting a consolidation loan is much easier now-a-days than it used to be in the past.

However, you need to consider the under mentioned few things before signing the loan paper.

Without an asset (as you have mentioned that you don’t own a house) you may not get a competitive deal with interest rate.

When you have an asset to support the loan, the asset actually remains with the lender. And he/she can take it away form you if you fail to relay the loan.

A debt consolidation loan is of longer term, hence you are actually paying more towards the interest than required.

To wave away other debts you may be actually exposing yourself to the bigger threat of bankruptcy.

Defaulting on a debt consolidation loan actually causes greater damage to one’s credit.

I would rather suggest that when you are still current with your payments try to negotiate it with your lenders for a lower amount. That would save both your report along with your money.