Your bad credit rating need not stop you from putting your finances back on track and getting the best refinancing deals, such as college-loan consolidation. Yes, even with less-than-perfect credit, many companies are willing to help you simplify your college loan repayment terms and enjoy lower interest rates

Consolidation can work wonders in getting your finances back on track. By combining all your loans and paying them with from your different creditors, loan consolidation companies simplify your payment terms so that you only have to deal with one creditor (them) and one interest rate. And because you now only have one creditor, your overall FICO credit rating significantly improves.

With consolidation, you can decrease your monthly payables by as much as fifty percent by extending the standard repayment plan to up to thirty years, so that you can slowly rebuild your credit. Interest rates imposed by consolidation companies are now as low as ever - and even with bad credit, you can qualify for as low as 3.50%!

Before you apply, it is best to personally talk to representatives from consolidation companies in order to get answers to your specific questions, such as how much you can actually save monthly, deference and forbearance terms, and special conditions for individuals with bad credit.

Be prepared with a list of your concerns and demand straight facts, not sugarcoated marketing statements. It is a good idea to ask for a detailed payment schedule before you sign up for anything. Finally, compare the terms and conditions imposed by different consolidation companies until you arrive at the best one.

Remember that college loan consolidation should help you manage your debt and avoid loan default, not make your life even harder. Do not immediately sign up for consolidation if you do not know how it works and what implications it has on your long-term financial health. Consult several experts before making a decision.