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Holding your breath is bad. The main reason is your body needs oxygen to workout properly. As you hold your breath you build up your CO2 in your body which will cause you to fatigue faster. Some of my clients either like to count their reps which helps them breath or during your contraction of the muscle breath out and when you relax breath in. So breathing will help you last longer in your workouts.
Surprisingly the answer to your question is quite involved. I will answer it from a freedivers point of view. First of all, holding your breath has different effects depending on what circumstances you do it under. When you exercise normally your breath will increase as a response to the increased levels of CO2 in your blood.