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Many people believe the myths or gossip that is associated with debt consolidation. After all it is easier to believe a negative side to something that will get you out of debt, albeit a difficult process to undertake. It's almost like the old wive's tales that tell you that "losing weight when you are overweight is bad for your health." In this case the myth we are talking about is the one where people ask: Do debt consolidation services hurt your credit rating? Most people that don't want to deal with getting rid of their debt will say "yes."

But how is that possible? You are already in debt up to your ears, creditors are calling right and left – your credit rating is already hurt. Debt consolidation services cannot hurt your credit rating any further. Quite to the contrary, they can only help your credit rating and make it better. Doing a debt consolidation is not – declaring bankruptcy – you are actually avoiding bankruptcy, owning up to your debt and paying it off in a debt consolidation agreement. This means once you have consolidated your debt, and you start making your monthly payments on time, your credit rating will begin to improve.

You have 0 debt on your credit cards, so the moment you consolidate your credit rating will improve. Now, there are both advantages and disadvantages to this credit rating improvement. First You won't have creditors calling, so you can start relaxing, and that is an advantage. But the disadvantage lies in the fact that those credit cards will be tempting, and you may get even more credit card offers, but you need to stay away from them, because incurring more debt will negatively affect your credit rating.

Hopefully this will have answered your question as to: Do debt consolidation services hurt your credit rating, and make you take that final decision of finally clearing up your credit debt. Granted, it is a painful decision, as all things that are good for you are painful, but it is the best and fastest way of getting out of debt.

Finally, by researching and then comparing as much debit consolidation providers, borrowers will be able to identify the agency that meet your financial situation properly, plus the cheapest interest rate the market is offering. Nonetheless, it is recommendable to work with a seasoned and reputable debit counselor before a conclusion is made, this is the way you save time because of seasoned advise & money by getting better results in a short period of time.

Hector Milla is editor of the website – where you can see his top rated debt consolidation service recommendation.

Tags: Debt, debt consolidation, debt relief, debts