Many people often make the mistake of immediately disregarding debt consolidation loans as they believe it will have a dire impact on their credit score. If you are going through financial hardships or struggling to make ends meet, then you need to take immediate action to get back on the right track towards a debt free future.Unfortunately, many people often refrain from consolidating their debt believing that it will significantly lower their credit score. Truth of the matter is that while it does affect your credit in the short run, it will help to increase your score over the long term as you work towards eliminating your debt.If you find yourself drowning in financial debt or have missed a few payments, then debt consolidation loans may be your best choice as it offers many advantages. Benefits you can enjoy include better financial management, reduced monthly payments and lower interest rates.The benefits of consolidating your debt should be fairly obvious as it puts you on the right track towards a financially secure future. Any disadvantages in the short term are outweighed by the advantages as your credit will significantly go up once you pay off your loans.If you own a home, another route you can choose is pulling a home equity loan as you can use the immediate funds for paying down any financial obligations such as credit cards or student loans. Fixed loans at low interest rates are the most ideal.If you do not have a home, then there are still steps you can take to paying down your debt. Depending on your financial circumstances, be sure to seek financial counsel to determine what the best plan of action is for you to take.Getting rid of your debt should be a priority and consolidating your loans is the best way of doing so. While it may hurt your credit score initially, it will soon begin to go up once your loans are paid off so it is extremely beneficial in the long run.