What Debt Consolidation Means for Your Credit Score
Skip to Main Content

What Debt Consolidation Means for Your Credit Score

If you're considering debt consolidation, it can be a good way to pay down your debt, but it should be done correctly. Debt management programs allow you to consolidate your debt into one payment at possible lower interest rates. We don't recommend debt consolidation loans which can lead to high interest rates and a longer payback period.

While debt consolidation can affect your credit score in a negative way, it is usually just for the short term. In the long term consolidating your debt can be helpful for your credit score. Learn more about this from the NFCC.