debt consolidation & FICO

[Anonymous]

I rarely use my credit cards except for work travels which I basically treat the card like a debit card since I get reimbursed.  I have a large amount of debt from a couple of emergencies in the past and the increased interest rates have added sooo much.  I would like to consolidate the debt so I can pay it off faster (& lcheaper).  I heard that going through one of those debt consolidation companies hurts your score, and I shouldn't do it unless absolutely necessary.  Is it worth it?

[marty56]

Welcome to the forum.  If you are talking about a Debt Management Program, where you get an interest reduction and up to 5 years to pay back the full principle, it won't affect your FICO score provided you arent revolving dbt on other CCs since you will loose the CL of this card from the totasl amount of redit you have when the account is closed.  In that case, the pont loos will only be till your alances on the other CC accounts are PIF or reduced.

If they are going to to a Debt Settlement, where they reduce the principle that you owe, that will hurt your redit and you might wind up gettig sued or rippe off in the process so I wouldn't do it. 

Message Edited by marty56 on 02-08-2010 12:11 PM