The average person juggles numerous bills each month: credit cards, car loans, personal loans, and more. If he’s buried under paperwork, he may want to consider a debt consolidation loan. Instead of dealing with multiple creditors, he only has to pay one bill each month. And he can get a debt consolidation loan, even if his credit isn’t perfect, if he secures it with some kind of collateral. Here’s how to get approved:

1. Decide your guarantee

Any item you choose as collateral for your loan should be one you are willing to risk, as the lender could take it if you are unable to make your monthly payments. One of the least expensive options would be your home, since you could get a home equity loan, a home equity line of credit, or a second mortgage. If you are not willing to risk your house, you can also use a car or a boat. Some lenders will accept stocks or bonds, or even expensive belongings like jewelry or electronics.

2. Find a lender

You will need to find a lender that accepts the type of collateral you are using to secure your loan. Most major lenders and banks offer home equity loans, and many offer personal loans secured by a vehicle or boat. You may need to do a little more research to find a lender that will accept jewelry or other belongings as collateral. Check with your local banks and credit unions, and do an online search to find a suitable lender.

3. Compare loan rates and terms

Before signing up with any lender, be sure to compare their rates and terms with similar loans. Some unscrupulous predatory lenders may try to take advantage of your situation by charging you a high interest rate or additional fees. It’s always best to compare at least two loans to make sure you get the best possible rate.

Try using one of the ABC Lending Guide’s recommended lenders for a secured debt consolidation loan.

Secured Debt Consolidation Loans are possible even for those with less than perfect credit. By using an expensive item you already own (house, car, boat, jewelry) as collateral, you become less risky as a borrower, increasing your chances of being approved for a loan.