One of the main reasons that your credit may be getting ruined is because of the any different debts you have all reporting to the credit bureau against you. There are a few things you can do immediately to help you start on the road to improving your credit report (through debt consolidation).
A few reasons why too many forms of debt hurt your credit:
1. You have many people reporting you rather than just one agency.
2. You have multiple interest rates (some which are very high).
3. Harder to keep track of who you owe what.
4. Paying too many debts little by little slows down the process of paying off all of your debt.
5. The more sources you have money from the worst it looks (the bureau thinks you're just transferring money around).
Consolidating all your debts can not only help you improve your credit score but can actually help you pay off your debt faster.
1. You only have to make 1 main payment - this way any payments you make over the minimum go towards paying off all of your debt.
2. You can get a much lower overall interest rate - this makes your debt less by default.
3. Many times if you use an agency to help you consolidate debt, they will help you negotiate a smaller payment or a much lower payment if you consolidate into 1 place.
Many times the consumer thinks it's bad to consolidate debt, however, if it saves you money and makes it so you only have to worry about paying 1 bill, rather than 10 - it's a very beneficial move.
The only time we recommend against consolidating debt is if you are taking “plastic" debt and converting it into “asset based" debt. This is a bad move.
For example, if you have a large credit card debt - it is NOT wise to consolidate that into your home loan. Yes, you will have a far lower interest rate, however, now your house is at risk!
If you have credit card risk, that means that your primary residence can NEVER be taken from you (even if you declare bankrupcty), however, if your home loan is what you default on - your home WILL be taken.
If you roll your credit card debt into your home loan, then it's basically like having a home loan now. This is a BAD and dangerous idea.
Trust me, many loan officers will tell you how great it is because you pay lower interest and that interest is tax deductible - but they make their money based on how large a loan they sell you.
At that point you ARE risking your home.
However, there are many ways to consolidate your debt without making it asset based - you should definitely do that!
More articles on how low interest debt consolidation and learn how to immediately apply for the best offers on the internet.
Our site has over 1,000 more useful articles for you! http://www.low-interest-debt-consolidation.com