Debt Counseling – Does it Impact Your Credit Score?

People are divided on debt consolidation as there are two opinions on this aspect. Some say that since this decreases the credit score, it’s not a good idea. It’s true that the credit bureaus, as well as the creditors, consider debt consolidation a sign of financial inconsistency. 

However, debt counseling bears no significance upon your credit score. Whenever you feel constrained by debts, you can always seek out counseling. Many reputed credit repair agencies offer this service for free. This is a good first step towards financial self-sufficiency
On the other hand, there are people who consider debt consolidation as a positive action. It’s true that this will initially register negatively on your credit report. However, in the long run you will benefit because you will get rid of your debts.

Debt counseling would be an excellent medium that helps you to decide whether or not to adopt debt consolidation as a solution.

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