For many people in a financial quandary, the options available to guide them towards an improved situation can seem very narrow indeed. But there is a route that exists that can make a difference – namely, a special personal loan for bad credit management purposes, which are offered by a growing number of specialist lenders.The chief attraction with these loans is that the old loans and their terms can be bought out, and replaced instead by one loan that is more easily repaid over a longer period of time. While fast loan approvals might be something of the past – at least in the short-term – the chance to turn the financial corner is hard to resist.What is more, with a new personal loan that is easier to manage, there is no further damage suffered to the credit rating.What Are These Loans?It might seem strange that loans are available specifically to those who are already struggling to repay their loans. The principal, however, is that consolidation allows personal loans for bad credit borrowers to be used to repay the loans involved, while the borrowers have a chance to restore their credit rating.Basically, the loan secured is used to repay the outstanding loans and debts that the borrower has, which ensures that the lenders get their money back in full. The new consolidation loan is repaid over a longer period of time, and in that way the monthly repayments are kept lower than the original debts combined. This makes the enterprise all the more affordable.While fast loan approval may not be guaranteed, it clears away much of the pressure that a borrower is under. This has all-round benefits, so the usefulness of these personal loans is extremely clear.Qualifying for Rescue LoansJust like any other loan product, it is necessary for applicants to qualify for personal loans for bad credit management. A lot of things are taken into account when qualification is considered, with details of a credit report from one of the three credit agencies (TransUnion, Experian and Equifax) used to assess the terms.For example, scores below 600 are considered to be bad, while anything between 600 and 650 is borderline. A decision by the financial company will also take into account the amount of money owed, the income of the borrower and his or her repayment history. From this information, they will be able to work out if taking on the new debt is feasible. A fast loan approval is unlikely.The information will also dictate the terms of the loan, especially the rate of interest to be charged and how long the loan is to be repaid over. Often, these personal loans will have long lifespans so as to keep the monthly repayment sum as low as possible.Consider Loan SecurityOf course, the chances of getting approval at all are increased when security is offered as part of any personal loans, for bad credit management or specific purchasing reasons. This means that funds are available to those who can provide collateral.Security practically removes the element of risk, and so two things happen. Firstly, fast loan approval is granted and secondly, lower interest rates are charged.The only catch is being able to find items that match the value of the sum borrowed – something that not everyone can do. In this case a consigner is the best option, someone who is willing to guarantee monthly repayments will be made when the borrower is unable to pay. An alternative is to split the loan between secured and unsecured personal loans.