here is an example, if you get 6.0% rate for a $300k loan. If you have housing related debt of $2000 unpaid. The typical lender will ask you pay off the debt (balance plus interest (usually 10%)) and offer you the interest of 7.5%.
During the 30 year term. 6% rate you pay $347515 interest. 7.5% rate you pay $455155. The difference is $107640.
If you get a loan without repay the debt. the rate can be 12% with 30% down.