Yes, or well, the more accurate answer is that it certainly can be. It depends on how you handle the debt consolidation process through to the end.

Debt consolidation is a process where you get some new financing and use it to pay off all of your old debts, in this case, your credit card debts. You then focus on paying off your new loan. As long as you really have a budget and know that you are going to be able to make your payments on time every month you can come out of this in a very good situation. With a history of on time payments behind you on this deal, and with your debts finally paid off, you will have greatly improved your credit score.

The thing to understand, however, is that this is only possible if you really have a budget and make your payments on time every month. Also, it is important to note that this is not a magic wand. This does not magically make your debts all go away, it simply gives you a path to follow to get them paid off and things all sorted out.

The big advantage for doing this with credit card debt is that this type of debt has a very high interest rate. That makes it one of the worst types of debts you can have, because the high rate keeps adding on and you end up paying the interest instead of the principle balance on the loan, meaning it's going to take you a whole lot longer to ever pay it off. If you pay the card off with a low interest loan, however, you can really save yourself some money and some time.

The other benefits of doing this are that you have one monthly payment to make, you don't have to deal with your old accounts or creditors, and that it just gives you a clear path to follow.

As mentioned above, if you have things clearly planned out you can also go ahead and use this as a way to move yourself on up the credit score scale and make a much brighter future for yourself financially. With being out of debt and a better rating on your side you will have a lot flexibility in all of your financial dealings later on.

Of course none of this can happen if you don't do the work to rebuild your credit rating and get out of debt. Whether debt consolidation is the answer for you or not is up to you, but make sure that you do find some kind of path to get out of debt and get towards this better financial future.