Many times, debt in more than one area (or on more than one card) can be difficult to manage. Consolidating all of those into one place is an option for many; however, it’s important to think about what may be affected by that choice.

First, we’ll examine debt ratio and what that means. Let’s say you owe $15,000 on all of your credit cards. If you’re annual salary is $45,000, then you’re debt ratio is 33%. A debt ratio over 40% is viewed as negative. Essentially, your debt ratio is determined by adding all of the debt together. If it’s all consolidated into one place, your debt ratio wouldn’t change, but other parts of your credit may be affected.

When it comes to your credit score, it’s important to remember that your debt ratio represents 30% of it. The remaining score is ascertained by many components, including payment history. Choosing to consolidate debt with a credit counseling service will put a mark on your credit report for seven years. This mark is essentially the same as filing bankruptcy and is accessible by anyone that looks up your credit.

So, if you’re thinking about consolidating your debt, understand that the amount of debt may not change, which wouldn’t change your debt ratio, but other elements of your credit would change for the negative.