Look out before consolidate your debt: Debt consolidation can be attractive when you finally start looking at buying a home. Most consolidation offers make it possible for you to bring all your debt under one umbrella payment. But there are also often hidden fees and interest rates that can increase your liability without expectation. Consolidation may not improve your credit in the way you expect so be sure and careful for your future. The loan approval is based on the current status of your existing bank balance.