Does Debt Consolidation Ruin Credit?

“Does debt consolidation ruin credit?” Well, the answer to that question is, if you consolidate too many times, the credit reporting agencies is going to see that you don’t have a handle or control over credit. And it will ruin your credit. If it’s done effectively right, once, the first time and you learn from your mistakes, and you transfer credit in a consolidated fashion and pay it all off, and you start taking the money that you used to pay for credit card interest and transfer it into savings and wealth building, then by all means, it will not ruin your credit but rather enhance your credit.

So you have to understand it’s a function of interest; someone is going to receive the interests, in this case, it would be the credit card company or the department store that you owe money to as a creditor. It’s better to be a person that is receiving the interest from the savings and the investments that they have. And you can decide which person you want to be. If you’re in a lot of credit card debt right now, take heart, because you can consolidate and march towards a better economic future.