To many seperate loans!

Welcome to the forums,we're glad you're here :D First of all, getting a loan to get out of loan or debt problems,can sometimes get you in deeper. If you signed up for the credit counseling,someone will contact you and give you some options. Consolidation sounds like it would be of help to you.Combine all the bills into one monthly payment,lower interest and only one thing to pay.Talk to the credit counselor,it's free, and see what options they have for you. Good Luck!...Karen

Right, if you keep multiplying your loans and don't have a good source of income, the debt to income ratio will go higher and higher. Non payments to your accounts will spoil your credit and the lenders won't consider for any future deals. This is to make everyone aware about the consequences of taking new loans with bad credit and being in defaults on them.

To make your payment process easier, some debt management program can do good help. There is no need to put anything collateral. You will pay to the consolidation companies and they send the payments to the different creditors enrolled in the plan. Take advice of a debt counselor before you make the final decisions.

But doesn't that damage your credit score.

When you put different accounts under one payment plan, they are getting paid off through the program. The account with the shortest balance gets paid off first. The creditor sends your file updates to the bureaus and the credits scores go up. Then, you can use that fund to another credit card account and once it's paid off, credit scores go up again. The program doesn't hurt unless you default your payments in the plan.

When you take a new loan, you are opening a new account in your credit file. For some reasons, if you miss your payments, the accounts turns negative that can hurt your scores.