How does debt consolidation effect credit report???

Hi hinindiana,

Welcome to the debt consolidation care forum.

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but they haven't been willing to work with me without negatively effecting my credit report.

Don't ever forget to negotiate your credit rating. You should always push for a perfect rating. Your final goal in negotiating your credit rating is to get the creditor to list your credit rating after the settlement as "Paid as Agreed" or "Account Closed- Paid as Agreed". Anything other than this listing will have a negative impact on your credit report.

Creditors are bound to change the status of your listing if you pay. It is because their main aim is to get the money from you rather than marking you negative.

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I could do a hardship for six months of lower payments and no late penalties

Credit card debt settlement process does not take long. If you are making a lump sum payment it can take as little as one month. But if you would like to stretch it around six months or more with low monthly payments you have to enter a hardship program.

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will show up as a collection on my credit report.

Showing this status would be the creditor's first choice and your last choice. This status is almost as damaging as showing the same debt unpaid. It is although very common, for an account to be deleted once it has been paid. The creditor now has no compelling reason to keep the negative listing on your report. It is still a good idea, to settle even if the creditor won't budge on deleting or positively modifying the negative listing.

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I asked if the collection would show up for only the six months, but they said no it will stay on there permanently

Proper and tactful negotiation is very important on your part to remove the negative listing from your account. If you are willing to pay there is no reason why the negative listing will be shown permanently.

Convince your creditor's well. I repeat once more that the main aim of the creditor's is to squeeze money out of you and recover the money you owe them and not mark you negative.

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I want to avoid bankruptcy, but feel on my own the odds are against me.

Yes, by all means you should avoid bankruptcy. Don't worry. You are capable of overcoming all odds. Just give in your best while negotiating with your creditors.

We expect your presence more often in this forum and would appreciate if you would share your knowledge and insights with other members.

Regards,
Jason