Debt consolidation effect on your credit score

If you can do it one at a time that is the best way. debt consolidation can damage while you are in the program. It is a personal choice. For some it is the only option to get out from under the debt. Be careful and do your research. A debt settlement company will settle with the debt at a lower amount and that will definitely show on your credit. Beware that some cc won't work with debt management programs. So weigh all your options before making your decision.

From what I have heard it can lower your score slightly. But if you feel that your are being strangled by debt it is worth it. It is usually only short term. Avoid debt settlement which is entirely different. That can really hurt your score. I am sure that others who have done it will be able to shed more light on this. At least I bumped your post up for better visability.

Usually when the program is over the credit score goes back up.

From what I understand, your credit might take a hit initially when you join a consolidation company. As you make your monthly payments then your score slightly improves as eventually the creditors will report you as being current. It's a slow process to raise the score though.

Have you talked to the creditors to see if they won't lower the apr so you can pay a less rate? Some might be willing to help with that.

Also apply for a free consultation...either call or fill out a request.

We did debt consolidation years ago and it did hit our score for about 3 or 4 months but as we got along with paying it, it did indeed show current and brought the score up fast. Most people who are considering debt cons are already in over thier heads so their scores are taking a hit to begin with!
And as frog stated, settlement is different than consolidation!
Make sure u understand the differnce,
Ang

I looked into debt settlement which sounded to good to be true - they did say your score would go down, but all would be paid off in 3 years - the problem is that they can't help you until you make the first payment - and they can take 15% off for there fee each month - the bills are cut in half, but your creidtors can come after you legally and garnish you wages - which I thought was just a bit too much to handle. I was behind on a few accounts - I called them made payment agragenments that I could handle - and should be ok by the end of next month. Plus they said as long as the payments are made, I will not be reported as late. I know its embrassing but the best way is to call and explain your situtation - Never do debt setttlement - if you are in over your head consoldate -