Debt consolidation program reflect negatively on your credit

Yes and no. It really depends on the creditor and how they will report the payments to the CRA. For example, it could be listed as "account settled", "third party payment", "paying/paid as agreed" or simply "no status". It also depends on what the consolidation company negotiated them to list as.

debt consolidation program doesn't reflect negatively in your credit report. It shows all your accounts are getting paid off through the program. This is better than leaving the accounts into default status. When you choose a consolidation program, it is reported in the credit file. It stays there as long as you are enrolled in it. Once the program finishes, it is taken off from the credit report.

Start paying the accounts with a smaller balance in the consolidation program. Once it is paid off, the creditor will report them as paid with the bureaus. This will improve your credit scores slightly. The process of increasing the credit scores continues as accounts are reported paid in the credit report. Check out the thread below to know how you can improve your credit scores.

http://www.debtconsolidationcare.com/forums/credit-check.html