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Debt consolidation is a good idea especially since a good agency may be able to get your interest rates reduced, waive or reduce late fees, financial charges, etc.
This results in you paying less money to your creditors in the long run,and, in a quicker amount of time. You should deal only with certified professional credit counselors.
But make sure you choose a reputable Debt Consolidation agency – a non-profit agency which has third-party accreditation and has a proven track record. Hello jayben, I am afraid that debt consolidation does hit credit score. Firstly check the status of your accounts on your credit report.
Debt consolidation is one of the primary options available to indebted consumers who are looking to ease their path to zero balance as well as save money and protect their credit standing in the process.
Unlike other alternatives – such as debt management, debt settlement and even bankruptcy – debt consolidation, when done right, won’t damage your credit standing in any significant manner. You can check out our Debt Consolidation Overview if you don’t know exactly how it works, but the basic theory behind debt consolidation is that you can use a new loan or line of credit to pay off existing debt obligations in order to garner a lower overall interest rate and a more manageable monthly payment.