Important information about debt consolidation loans includes the possible effect on credit scores. The consequences are both good and bad depending on behavior after the lender disburses the funds.

Get advice from multiple perspectives before buying a house or closing credit cards. Consumers dealing with wage garnishment may be disappointed.


Consumers seeking advice about debt consolidation frequently want to know how a particular program will affect their credit score. Sometimes the impact on ratings is important. Other times it does not matter.

People suffering financial hardship often find that the impact of a debt settlement program does not matter. Their score is already too low to qualify for a new loan and will not recover anytime soon. The opportunity for lasting relief is far more important.


Online debt consolidation loan information often promises things the source cannot deliver. Combining your obligations into one convenient lower monthly payment sounds very appealing.

Unfortunately, consumers most in need of this type of relief rarely qualify. The large amounts of unpaid balances push down their credit score and boost their debt-to-income ratio. Neither is good.


One element of debt consolidation information you may have to learn the hard way is that low interest rates are very hard to find. Applicants needing to combine obligations and spread out the terms rarely have the best qualifications.

You must be able to show a strong credit history and sufficient income. If you cannot, you may want to consider the alternatives.


Reliable debt consolidation information is very hard to find. Low-income earners may find it especially difficult to identify trustworthy lenders and resources.

Borrowing money requires a steady job and reliable source of income sufficient to cover your new obligations, along with your everyday living expenses. You may want to explore other options.