Debt consolidation affect on the credit ratings?

I am in credit counseling right now and I was told that it does not hurt your credit unless you default on the plan. I have been in it for a few months and one of my credit cards is almost paid off! Plus, I have payday loans, and if I let them go to collections, I can add them to my debt management plan.

People consider consolidation program only when they are unable to pay their debts on their own. You may be at the risk of getting behind in your payments and add up with high interest rates and late fees. debt consolidation will be a controlling step and combine everything under one easy payment plan. Your scores will rise after all the accounts are paid off. This program will be removed from your credit report after the plan is finished successfully.