Some people consider credit card debt bad and mortgage or student loan debt good.
The truth is that having any debt means you are financially beholden to a creditor and you can’t put your money in your own pocket until your obligation is met.
A credit score is derived from items reported in your credit file.
It uses a complex mathematical algorithm to come up with a score that predicts whether you are more or less likely to default on your next loan.
Also, not all debts can be discharged in a bankruptcy. Collection accounts fall off your credit report after seven years.
Debt consolidation won't address the real problems that may sink your credit rating!The problem is that bankruptcy is a serious derogatory mark on your credit.It won’t prevent you from getting credit in the future, but for a time some credit products will be unavailable to you and others will come at very steep prices.So, you would think that student loan consolidation is a no-brainer, right? Qualifications First, there is a short list of requirements that you need to meet to qualify for student loan consolidation.Federal and Private There is also the distinction between the types of loans that you have.