Not necessarily. If your account has gone into collections, you can still get a loan to cover what you owe and possibly get a debt consolidation loan. However, since you have account in delinquency you will have negatively impacted credit and it may be tough to get approved for a new loan. What might work better if your account has gone into collections is to negotiate with your lenders. This is called debt negotiation. Both debt settlement / debt negotiation firms and many credit counseling firms will allow you to enroll into their debt consolidation programs even if your accounts have gone into collections.