If you think you are alone with your debt, think again. Everyone, regardless of economic status or situation, is in debt in one way or another. You might have small debts, like credit cards or financing, or large debts like student loans and mortgages. Either way, your level of debt directly affects your credit.

Without a good credit score, you might have trouble getting a loan or a mortgage, or even a debit card – things that most of us take for granted. Your credit score is the key to your credit report, maintained through a credit bureau. If you miss payments or fall into default on a debt, it will be reported to your credit bureau, and as a result, your credit rating will fall. Repairing your credit effectively is a process with many steps, and is unique to each individual. However, one method of improving credit scores, that has worked for individuals in many situations, is debt consolidation.

It is important when dealing with credit repair to act quickly. Though your credit rating became damaged as soon as you missed a payment on your loan or debt, it will get worse and be more difficult to act on later if you don’t act right away. It is a common misconception that you either have “good” or “bad” credit and once you get behind, it’s pointless to try and fix it. This is not true! It’s always best to work on your credit issues right away, because if given the opportunity, they will get worse.

Even if your haven’t been able to pay your creditors on time, repairing your credit requires that you pay your debts as quickly as you can. Unfortunately, your economic situation is probably such that you don’t have all the money you need to pay your debts, or you wouldn’t be missing your payments in the first place. This is why debt consolation can be a great tool in credit repair.

Debt consolidation works by combining all of your existing debts into one loan. In other words, if you have several different existing debts, you can take out a single loan from one bank or company, pay your existing debts with that loan, and be left with only one loan to pay off.

Debt consolation allows you flexibility in situations where your outstanding debts have become unmanageable. Though the amount of money you owe won’t change, you could get a long-term loan for your debt consolidation and your monthly payments will be lower. Best of all, debt consolidation will immediately bring you current with your creditors, and ultimately repairing your credit will be easier. Debt consolidation is not a quick-fix credit solution, but it will prevent additional immediate damage to your credit, and allow you to begin repairing your credit right away.