By using a credit consolidating service will it damage my credit score how does it work and is it worth it?

Question

drownig in credit card bills

Answer 1

No it will not damage your credit score. Credit counseling is a very common form of online debt consolidation. It is also known as credit card consolidation. A credit counseling company will attempt to get you a lower interest rate on your credit cards in order to coax you into paying them down. More often, they will have a relationship already with major creditors and so they would negotiate to reduce your payments. And on that reduced amount they would offer you an affordable debt repayment plan based upon the amount of debts and your income.

Hope this answers your question

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.

Answer 2

I was in the same situation about a year ago, and I went through a debt consolidation plan. It's been rather helpful, not to mention a relief, since they work with you to come up with a payment you can manage, as well as lower interest rates so you can pay it off faster. It doesn't really hurt your credit score (not mine anyway) since using this program has brought everything to current and I've been paying it on time. It's actually helped improve it. Regardless, it is better to slowly rebuild your credit than to declare bankruptcy.

Hope this helps!!

Answer 3

It's a great option if the company is reputable and does what they're being paid to do. If you're getting fees up front and/or a run around then high-tail it outta there fast!

If you have minimal debt, try and attack it yourself for free.

The difference is that debt counselling is reported on your credit for 3 years as opposed to a collection/negative item for 7 years.

Answer 4

I was told that it would show up on my credit when I signed up for CCCS.  It has never shown up on my credit score.  That was almost three years ago.  They really helped me get my debt in order.  The company I used was non-profit.  Their services were completely free.  Check out BalancePro.net.  It was so much easier to pay one bill every month instead of multiple payments.