Your credit score is your lifeline for future purchases.
It can determine if you are qualified for lines of credit and what interest rates you will have.
When people are already in debt and they are struggling to get out, the last thing they want is to have their credit ruined.
Too many people suffer under oppressive interest rates of credit cards, because they fear what consolidation services may do to their credit score.
Do not be afraid.
Consolidation services can actually help your credit score.
A debt consolidation is a loan that is used to pay off all, or most, of your high interest credit card debts.
Since those creditors are paid in full, they are no longer a risk to your credit score.
You will not have to worry about missing one payment, because you forgot to send it in with the others.
You make a single payment so your bill paying is simple to manage.
This can help to prevent accidental missed or late payments that may show up negatively on your credit statement.
Consolidation loans shows up as another line of credit on your credit report.
When you have good and maintained lines of credit, it increases your overall credit rating.
This is because it shows that you are a responsible borrower.
People that show financial responsibility, often qualify for better loan rates.
Consolidation loans can also lower your debt ratio, meaning that you spend a lesser percentage of your income on debt.
This works to your advantage in two ways.
It gives you an advantage for future credit lines.
It also can allow you to save money that you can use to pay off the principle of the consolidation loan.
This allows you to get out of debt faster.
It is up to you to make sure that your payments are done on time, and that you manage any other debts.
Once you are free of debt, by successfully completing a debt consolidation, your credit is restored and is often stronger than before.