Does debt consolidation effect my credit score

There is no one-word answer to your question. It may or may not. FICO score does not consider if you are enrolled in debt consolidation program or not, even though your creditors report your account as under consolidation program.

However, few creditors might look it as your incapability of paying bills; on the other hand, there are lenders who take it as your sense of responsibility and they rate you positively because you paid attention to your creditors.

Read this thread to know more on this topic-

http://www.debtconsolidationcare.com/forums/understand-fico.html

It counted negatively toward my friend obtaining a mortgage.

Ok, from what I understand it can show as a negative at FIRST, but as you start paying your debts off, the score will rise.

I would have suspicions of any company that asks for$$
to settle my debts. Especially when you can negotiate
with them yourself.

Another thing I find HIGHLY SUSPICIOUS are the
people that get shanked by these PDL'S and sunddenly,
out of the woodwork,are these "debt consolidation"
companies willing to "negotiate" with them for yet
another high fee!

Case in point,read topic in foruum regarding
"Hess and Kennedy!"

I guess it's my suspicious nature!

michaeljm39, nothing comes free. If you are using the services of a debt management company, you will have to assume charges for it. I have a business and there are infrastructural costs involved in it. Not to forget the employees fees and other misc. expenses. Ultimately, in order to keep the business rolling, I will have to charge a fee from the consumers. But you should be very careful about the chosen company before sending your money. Make sure that no one is trying to scam and make easy money from you.

Legit costs are one thing,Shanking someone whose already down is another!

I second you.