What would be a credit consolidation company to use?

If you use a debt consolidation program or company to lower your monthly payments does this affect your credit?

• Answer:

  I was interested in doing this; I asked random creditors first what the effect would be on obtaining future credit. They advised that it was better than bankruptcy by far, but that it told creditors that you had trouble managing your finances and you were a poor credit risk. When i was in debt I came across one company which helped me out to reduce my debt to 60%. It offered a variety of Christian consolidation programs and information for federal and private student loans also. Loan consolidation is a method for reducing student debt, credit card debt and loan payments. Consolidate your debt and reduce your monthly payments. Debt consolidation has a minimal effect on your credit. In most cases, you apply for a home refinance or debt consolidation loan and use the proceeds to pay your other debts. Although you will now have a single larger debt on your credit report, several small debts will be eliminated. There are other programs that are also referred to as "Debt Consolidation" programs, such as credit counseling and debt settlement, these will have some sort of adverse effect on your credit. Yes Companies offering "Debt Consolidation loan" services provide funds at a bit high rate of interest. So person you is facing bad credit will suffered a lot due to these loans. My advise borrow money from family members and others except applying for these services.