Is it true debt consolidation will as bad of an effect on my credit score as a bankruptcy would?

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1. This (and many other articles on the site) may help you: Rebuild Your Credit the Right Way the First Time I don't know where you live, so your country's laws may be different. The site below is refering to practices in the U.S.
2. Yes. A much better way to do this... - Pay the most on the card/bill with the highest interest rate. - Pay at least the minimum on all the other cards/bills, so you don't get any late fees/bad marks. - When the card/bill with the highest interest rate is paid off, start paying more on the next highest...and so on. You will not see quick results, but this way it will save your credit score and it could even help you boost it eventually.
3. I'm not 100% sure, but I seriously doubt that to be the case. From a logical standpoint, a bankruptcy basically means you will pay back little, if any, of your debts. With a debt consolidation you are taking out a loan and paying off all of your other debts. In this scenario, all of your creditors have been paid off and you're working with one lender to pay off your obligation. In my opinion, the answer is no. Your credit score will be damaged more from the bankruptcy than a debt consolidation. Good luck!
4. absolutely not. I consolidated my 11 credit cards and paid them off with the help of a credit counseling agency--Debt Counseling Corporation. My credit is actually better--my credit cards still reported every month even though the accounts are closed and this helped my score out so much. I now have a 731 according to my wamu account--they updated it every month. Once i was done with my program, when you look at my reports, it just says that they are paid and closed. you should check out the company i used. they are great: http://www.debtcounselingcorp.org
5. The honest truth is that the only form of debt consolidation that does not impact your credit at all is getting a debt consolidation loan (or a mortgage refi). I'll cover all of your options for you below, but if you are interested in a free consultation for your specific situation, I encourage you to apply for credit counseling service advice. Bills.com makes it easy for you to apply, by following this link: https://www.bills.com/debthelp/debt Debt consolidation comes in many forms, so it is important that each consumer reflects on what their needs and concerns and financial situation is before signing up for an online debt consolidation program. The four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors. Since there are a variety of online debt consolidation options, including credit counseling, debt negotiation/debt settlement, a debt consolidation loan, and other debt resolution options, it is important to fully understand each option and then pick the solution that is right for you. Credit Counseling Credit counseling, or signing up for a debt management plan, is a very common form of online debt consolidation. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts – but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report… and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy – or using a third party to re-organize your debts. Debt Settlement Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of online debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving money. Debt Consolidation Loan Many people think first of a debt consolidation loan when seeking online debt consolidation. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high… but the monthly payment will be lower than other options and there is no credit rating impact. Net-net: while there are many forms of online debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the online debt consolidation option that fits for you.
6. It is more of a matter of whether the debt consolidation is with a legit company. If you borrow money to pay off other debts so that you only have one payment instead of several that really should not have the same impact as a bankruptcy. If you go with a debt consolidation company and they don't make the payments they should, it will only make your credit worse.
7. Probably best to have a rest.looks like you can get some ideas here.http://debt-consolidation.featured-resources.info/debt-consolidation-secured-loan.html