Many people that see their credit score go from good to bad feel that a bad credit debt consolidation loan is the best way to get back on their feet. In reality, just piling all of your debt into one place may take longer to pay off and could cost more interest over the long run.
Also, if you have credit card debt and get a debt consolidation loan, paying on one form of debt, mainly a debt consolidation loan, may not be as beneficial as paying off cards separately.
Many people are proponents of the one-card-at-a-time attack in which you concentrate as much money as you can on one credit card, paying the minimum on the rest, and paying off that card as quickly as you can, which frees up money to pay off the other cards in the same way.
This may be better for your credit history as you are making payments and paying off various credit cards, rather than just a debt consolidation loan.
However, in order for this method to work you have to want to get out of debt, which requires you to budget, save, and only buy on credit when you have the money to do so.
Getting out of debt and raising your credit score does take work, but it is worth all the time and effort as long as you stay out of debt. Making a change in your spending habits is going to be necessary to not only get out of debt, but also to stay out of debt.