Would anyone recommend a Debt Consolidation Service? If so, which one? What are the negative effects on one's credit? What are the Pro's and Con's? I have about 15K in CC Debt, 33K in SL debt, and 25K in Car Debt.
Stay away from DSSs!!! They are rip-off kings/queens. See a bankruptcy lawyer. While student loans will not be dischargded, and your car loan - if you want to keep the car - will have to reaffirmed, your 15k CC debt could be discharged if you qualify for a Chapter 7.
I'm not sure I'd go filing BK over $15K. Not all debt consolidation services are ripoffs. Before you sign up with one, do some checking. The better ones are nonprofits. Also check the BBB and do some web searches on them to get a background on them before you sign up.
15k is not worthy of BK in my opinion however, the implications of it and debt consolidation is roughly the same when it comes to credit reporting. Both convey the message of financial mis-management and insolvency. Your creditors may note the accounts as being in some debt repayment program and it will look bad on a manual review. I don't think they apply a special rating to them though and thus, it may not effect your FICO scores.
