cutting up credit cards

If you're considering debt consolidation it's important to understand how it may impact all aspects of your financial health including your credit score. Debt consolidation can be helpful in paying off debts, but only if done correctly. We don't recommend using debt consolidation loans which tend to have high interest rates and can lead to a long payback period. We recommend the use of a debt management plan to consolidate your debt into one payment at possible lower interest rates.

Any debt consolidation can impact your credit score, but if done correctly while it may negatively impact your score in the short term, it will be beneficial in the long term. Read more from the NFCC about why this might happy and what it means for your credit score.


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