There are solutions to high debt and avoiding bad credit.

There are a wide range of smart strategies for people in debt, those establishing bad credit, or people looking to get their payments under control, including credit card debt management services, bank loans or home equity debt consolidation loans. A home equity loan is a great way to consolidate debt due in no small part to these advantages:

Savings
By lowering your monthly payment, you could save hundreds of dollars each month as you pay down your debt from credit cards or other loans.

Convenience
You can consolidate your monthly debt into one simple payment to help with payments and avoid bad credit. Forget stuffing four or five checks into as many different envelopes, stamping each and remembering to mail them all. Debt consolidation means you'll have one simple monthly payment.

Improve your credit and avoid a poor credit rating
With fewer outstanding obligations, your personal credit report will begin to look better to prospective creditors. Poor credit can put a strain on your future ability to borrow money. And, with a single consolidated payment to remember each month, it will be easier to budget for each payment and make it on time, which over time will improve your credit rating and avoid any bad credit ratings. You’ll pay down your debt in no time.

Q:   What if I have little or no credit?

A: You may be able to use your good payment history on rent and utilities by providing a year's worth of canceled checks to validate consistent monthly payments. This information will become part of your application for the mortgage loan.