# Credit & Debt Consolidation

**URL:** <https://boards.straightdope.com/t/credit-debt-consolidation/133619>\
**Category:** Factual Questions\
**Created:** [October 24, 2002, 2:22am UTC](https://boards.straightdope.com/t/credit-debt-consolidation/133619 "2002-10-24T02:22:44Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Nevermind](https://avatars.discourse-cdn.com/v4/letter/n/53a042/32.png) [@Nevermind](https://boards.straightdope.com/u/Nevermind)\
**Post date:** [October 24, 2002, 2:22am UTC](https://boards.straightdope.com/t/credit-debt-consolidation/133619/1 "2002-10-24T02:22:44Z")

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We were thinking about consolidating our credit card debt. We don’t want to go the home equity loan route. I’ve heard that it can go against your credit rating to use a debt consolidation service. Is that true and how badly does it reflect on your rating?

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**Author:** ![happyheathen](https://avatars.discourse-cdn.com/v4/letter/h/b5e925/32.png) [@happyheathen](https://boards.straightdope.com/u/happyheathen)\
**Post date:** [October 24, 2002, 4:15am UTC](https://boards.straightdope.com/t/credit-debt-consolidation/133619/2 "2002-10-24T04:15:08Z")

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IIRC -

The “debt consolidation/re-structuring” services are paid for by the credit card companies - the usual deal is that they will accept less/slower payments rather than have you default.

So, if your use of such a service results in the CC’s being paid less than existing minimums, you could expect some sort of ding.

How big? Have no idea, but don’t expect any new CC’s anytime soon.

p.s. - the CC companies live in deadly fear that people will stop paying the bills - CC default is why the rates on CC’s is so high, and why personal bankruptcy is such a political issue.

p.p.s. - don’t go with home-equity (second mortgages/refinance) - that converts unsecured debt into secured debt.