The straight answer is this: debt consolidation will not and can not hurt one’s credit unless that person chooses not to pay his or her single easy monthly payment. To understand why this is, one must understand exactly how consolidation works. This process works by the consumer borrowing a large amount of money from the consolidation organization, typically enough to cover all or most of the debts that one has at the time.

It’s easy to become a bit confused when trying to find a reputable nonprofit Debt Consolidation program where the counseling services will actually get you out of debt and improve credit over time. If you have accounts that are current or past due less than 6 months a consolidation plan can help you save thousands in interest and improve your credit rating over time.

I have heard that this is not a good thing, or that lenders do not like to see this. I am sure it does not impact my score though. Someone please set the record straight.