Simply consolidating your debts into one monthly payment doesn’t fix the real reason we got into debt in the first place. If you consolidate debt without looking at your bigger picture, you may find yourself even further in debt a year or two from now.
First, it is important to recognize that your bad credit and debt isn’t the problem. In fact, your debt is just a symptom of the problem.
Debt and bad credit scores stem from something bigger, something deeper. Sometimes they are a result of a job loss or illness, causing you to use credit or not be able to pay your bills on time. Other times debt comes from not knowing where we stand with our money, and extending ourselves too far.
Ask yourself, why are you really in debt?