Is debt consolidation going to effect my credit score?

The credit report will show that you are making the payments through the debt management plan. This program is suitable only if you are unable to pay high interest rates and you are expecting to default in your payments in the future. If you can afford to pay on your own, this program is not the right choice for you.

This program will be appearing on your credit copy until the plan is finished. Your scores might be low for a while. Once everything is paid off, scores will rise. This program is suitable in case you want to stay current on your accounts and pay the debts at lower interest rates and with most fees waived off.

I am in debt management...because I could not keep up on payments to my medical bills and credit cards due to the increased fees I was paying in ipdls. I chose this to help pay off all my debt. My credit was already being damaged because of late and skipped payments...so I figured I couldn't do much more harm and after paying everything off I know my score will improve. It is a personal decision and you need to way all your options.