For people with poor credit looking for providers of bad credit consolidation loans, remember that interest rates will likely be higher than posted traditional mortgage rates, but still considerably lower than the debt they are trying to consolidate.

For instance, a private mortgage for the purposes of consolidation, may be available at a rate of 12%.  While this is high relative to the current rates for good credit, its a lot lower than a 20% interest rate on a credit card balance.

And because private mortgages are typically interest only, there is some cash flow relief provided so that the borrower can develop a longer term plan for repayment.