Effect of debt consolidation program in the credit report

Hi jbaker

Welcome to the forums.

debt consolidation program does not put any negative impact in your credit report. 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. The monthly installments set in the program will be much lower than what you pay your creditors on your own. The consultant will negotiate with them and all the late fees, financial charges will be eliminated from the total debt. Your accounts will be handled by them in the future.

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

Regards
Roxette