Bad credit debt consolidation loans work in the same way as regular debt consolidation loans.
They allow people with bad credit and overwhelming debt to consolidate their debts into one easy loan.
Unfortunately, many Australians who are overwhelmed by their debts can find themselves missing monthly repayments.
This difficult situation can lead to an individual building a bad credit rating.
Plus, debt consolidation loans through Prosper have a fixed interest rate, and your loan principal goes down as you make your loan payments—so you can stop your high interest credit card debt from spiraling out of control.This is a common scenario which can lead to a bad credit report if you miss a few payments here and there.