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Many people are hesitant about using a debt consolidation service because they are concerned it will hurt their credit score. Something to keep in mind when asking that question, how high is your credit score currently? If you are in a position that you are considering a debt consolidation service, it is probably not very high. If you credit cards are at their limits or possibly over their limits, that is what is hurting your credit score. Making minimum payments, and possibly late payments is also bringing the score down. In some cases credit cards will close your accounts for non payment and that negatively effects your score as well.

Consolidation services do not hurt your FICO score. The fact that you sought a debt counseling service will show on your credit report. Some lenders don't like to see that. They get a little concerned that maybe you were unable to handle your finances, and were on the verge of bankruptcy. You need to take time and rebuild your credit, after you are finished with your debt consolidation plan. In most cases, when you seek out the debt services, you will go through some kind of financial planning course, and should receive a certificate. This may help a potential lender feel more comfortable. Paying off your debts with on time monthly payments will bring your credit score up. The plan to repay your bills, is typically 5 years. A good 5 years of payment history, will prove to potential lenders you are on the path to recovery and may manage your bills. The possibility of becoming debt free with a possible blemish on your credit report is still more ideal than the other option of bankruptcy or a continued mountain of debt.

In a nutshell, by a thoroughly researching and then comparing several debt consolidation services, borrowers will be able to qualify and determine the agency that meet your specific financial situation, plus the cheaper interest rate the market is offering. However, it's recommendable working with a seasoned and reputable debt counselor before even make any decision, this is the way you save time because of specialized advise and money by obtaining the best results in a reduced span of time.

Hector Milla is editor of the Reputable Debt Consolidation Companies website – where you can see his best rated debt consolidator service recommendation.

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Tags: Debt, debt consolidation, debt relief, debts