If you are a consumer who has been on the receiving end of a flurry of phone calls and threatening letters about debt collection, consolidation may seem like a viable option. However, the problem with this scenario is that debt consolidation is often predicated upon the process of securing a loan that can be used to pay off your past-due accounts. Although this approach can be helpful, particularly for consumers who want to rid themselves of the costs associated with high-interest credit cards, the process of securing a consolidation loan can be tricky if the past-due accounts that you are attempting to pay off have already had a negative impact on your credit score. Lenders are usually hesitant to disburse funds to consumers who are the target of heightened collection activity, because they are regarded as a poor credit risk. This is particularly true in today's financial environment, in which many lenders that have been devastated by foreclosures and defaults have significantly tightened their lending criteria.