Restoring Credit After Debt Consolidation, How Is It Done?
Hi there! I recently had my debts consolidated It will take me some time to get them all paid off, but that’s fine. I’m on my way 
However, I’m wondering how it all works. What is my credit going to be like when all is said and done? Will I be starting over with a clean slate? Is there more time involved? I need a run down from a seasoned pro! Thanks, Rea
It is my opinion that it damages the same as a chapter 7 or 13 bankruptcy. It all stays on your reports for at least 7 years and most times you cannot use any credit during the pay off time.
At least with chap 7 you can begin to build credit again the day it is discharged.
These debit consolidators are more often than not scams that cost more in the long run. I truly HOPE you are with a Non Profit accredited credit counselor and NOT a company like Incharge or Freedom or the “Care” people.
Good Luck! It is not to late to talk with an attorney for real debt relief.
It isn’t a clean slate, but it is organized. Debt consolidation takes all the little debts and merges them into one, paying them off so all that is left is one large debt sum. This debt usually has low interest, so it makes more sense. This will help your credit but not erase it and start over. The only way to build credit is to have it. I would recommend starting with a secured credit card from your local bank. Keep the balance low and pay it off every month. Your credit will only improve when you use it. But remember, late payments judgments, charge offs, will destroy any positive gains you make. So pay on time every time. Time will fix your credit, so be patient.