This upcoming year is going to be rough for our economy with many families over their heads with credit card debt leaving many people searching for a way to consolidate debt loans. One of the first things people look to do to manage their financial situation is to obtain a loan and consolidate all monthly minimum payments into one. This would'nt be a bad idea if you are currently able to manage your minimum payments plus some because it can make life simpler when it comes to paying the monthly bills.

But if you are not able to keep up with the payments chances are you will not qualify for any debt consolidation loans even if you secure the loan with your home. Reason being the majority of consumers are under the assumption that they have OK credit because they have been consistently on time with their payments. However they don't realize that the largest issue when getting approved is their debt to credit limit ratio, which means if your total sum of debt exceeds 50% of your total credit limit most assuredly you won't have the ability to get any debt consolidation loans. If you have waited until you have fallen behind and missed payments then chances are that if you were able to find a loan to consolidate your debt the rate can be so unreasonably high that it would'nt make much of any sense doing it.

The more loan applications that you submit for approval will decrease your credit score by as much as 5 to 10 points for each one so after only applying to 4 or 5 organizations your credit score could be lowered by 50 or more points diminishing your chances close to zero for being approved.

If you are like millions of individuals who have come to the realization staying current with the monthly minimum payments on bills such as credit cards and personal loans is going to be impossible than you may want to get in touch with a professional debt settlement company. If you are eligible you may be able to save up to 50% of what your current debt balance is in as little as 24 months.