In most cases, the consolidation will not even appear on your credit profile, because for all intents and purposes you’re paying your debt off on a schedule you and your creditor agree to follow.

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When you reduce debt, you restore your credit utilization ratio to where it needs to be.

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Some plans require you to become delinquent on your accounts in order to enter into the program.

Missing even one payment on an account will hurt your credit history and your credit scores.For a list of all of our advertising partners, click here' With so many websites offering free financial tools, it can be hard to know whom to trust.At Nerd Wallet, we spend literally 1,000s of hours researching partner offers and following strict editorial integrity to match you with the perfect choice.In turn you would pay off the lump sum likely at a much lower rate than say what your credit card company is offering.In turn, however, your home could be on the line if you default.You get lower payments with less added interest, so you can get out of debt as quickly and affordably as possible. The information below can help you understand what kind of impact debt consolidation can have on your credit profile and credit score.