credit score

It depends on your current credit score. If you already defaulted on a bunch of stuff then it might improve it. It also depends on if you are doing a true consolidation or if you are going into a debt management plan or debt settlement plan. A true consolidation occurs when you take a bunch of smaller debts and combine them into one larger debt. Generally you need decent credit to do this and it would not affect your credit score much I don't think. If you go into a debt management program then you make one payment to a company that negotiates new terms with each of your creditors to lower interest and penalties which can lower your score some. If you go into a debt settlement program then generally you default on your loans and the program tries to settle at a percentage of amount owed. This will lower your score until you settle the defaulted loans.