Good credit

Debt consolidation works if you manage it correctly, but even doing the right thing with your debt consolidation payments can damage your credit score temporarily. An important part of your credit score is the amount of credit you have available to you and what percentage of that credit you are using. If you close your accounts after you pay off your debts, you might reduce the amount of credit you have, thus lowering your score.

Debt consolidation or debt management programs will tank your scores. As a general rule, you are not paying as agreed per your card holder or loan docs.

Debt consolidation, unlike debt settlement or DMP, won't hurt your credit score as such. Here, you won't pay lesser amount but will only pay at a pre-fixed lower interest rate per month. It will temporarily affect your score but will never ever 'TANK' your score.

Most of the people here do not qualify for a "debt consolidation" loan. Banks are just not giving them out.

A DMP is commonly called debt consolidation....it will tank your score.