Some other debt reduction options will affect your score adversely, but a loan for debt consolidation is mostly just for lowering interest rates and reducing the number of bills you're paying. It's a very powerful option, as long as your bills are paid on time.
You can save a lot of money if you receive a 0 % introductory APR credit card offer that allows balance transfers. While you must be diligent and disciplined, transferring a balance from a credit card with a high interest rate allows you the chance to pay that balance off much easier. However, you must be able to handle this form of debt consolidation, or it will not help you at all.
Why do you want to consider debt consolidation to help you out? If it is only to reduce your payments so that you have more money to spend on discretionary things, such as entertainment or going out to eat, you are making a huge mistake. This method is only for those who are intent on paying down debt.
Debt consolidation is not a shortcut solution for long-term money problems. Debt will always be a problem if you are not willing to change how you budget and spend your money. Once you have gotten the right debt consolidation loan, review your finances and spending behavior with a fine-tooth comb, and make some changes so that you don't find yourself in this situation again.
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