Debt consolidation effects on credit report

Hi Crystal

Welcome to the forums.

When you are using a debt management plan to pay off the past debt, it is your move to improve the credit file. After enrolling in the debt management program, a comment will appear in your credit report stating that you are paying your accounts through the consolidation company. It will remain till the account is paid in full. This comment does not hurt your credit in the least.

Your credit scores are constantly revised through the payments that you make towards your debt accounts. If payments have not been regular or the accounts are charged off, credit scores are adversely lowered. But scores get enhanced with the timely payments and if the accounts remain current.

It is the responsibility of the debt consolidation company to make regular payments to your creditors. Do some researches before you choose the consolidation company as your accounts will be handled by them thereafter.

The creditors also appreciate your responsibility of taking care of the debt accounts. They will be willing to offer reduced rates of interest, and eliminate most of the financial charges.

You can take a free counseling in this website to know about debt consolidation program and the consultant involved in it.

Regards
Roxette