credit

Hi Torrey

Welcome to the forums. debt consolidation program is designed for the consumers to pay off their debt. It does not hurt your credit rating but you will be stopped from acquiring additional credit during the program.

As in the debt consolidation program, a monthly check is sent to the counseling agency that in turn pays to your creditors. So, your involvement in the debt consolidation program will appear in your credit report and will remain until your account is paid in full. Such comments do not hurt the credit scores at all. But if you stop making payments or if your counseling agency does not make any payments at all, your credit will be badly damaged.

The company offering debt consolidation program does not report to the credit bureaus. All the details of your accounts are reported by the creditors. So, it is very important to negotiate with your creditors in a fair way and acquire positive output from them.

Ultimately, the main motive of the debt consolidation program is to improve the financial and credit worthiness of the individual. Always ensure that your credit report is free from any negative entry otherwise it will stay for as long as 7 years.

Regards
Roxette