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Question By
bbqtom

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Will a debt consolidation help me with my current financial status?
I am currently going to be using freedom debt relief as an option for the consolidation.

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Top Contributor
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Help is a broad term. Is this a single loan to pay off or a company that you will pay to get your head above water? If it is a consolitdation company, then It will hurt you in the short run, but may help in the long.  If you are not willing to put in the time and work to do what they will do on your own then it maybe an option.  They will negotiate pay off, and payment scheduals with your creditors.  This will hurt your score as your lenders will claim write offs that stay on your report for 7 years.  You will pay a percentage of amount owed to the consolidation company each year and will take longer to be debt free instead of doing it yourself.

If it is a loan then, it is a much shorter hurt, just hard inquiry, and average of credit going down.  If this is what you are refereing to, then you need to be very carefull and the majority of people who do debt consolidation loans then just rack up more debt and really dig a deep hole.

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