How Debt Consolidation Can Hurt Your Credit Score
There is no doubt that getting out of debt is difficult. A common method to help consumers get out of debt is credit card debt consolidation. But in many ways it can be a trap and could hurt your credit score.
First, before you consider credit card debt consolidation, you must know it has a low success rate. The failure rate is based on the actions of consumers after consolidating. They actually think they are making progress towards getting out of debt. In truth, they have only moved the money from one account to the next. They then believe it is OK to then spend again. In truth that is the worse thing they could do as this will put them in even deeper debt. As they continue to add back the debt the closer they come to their limit hurting their credit score.
