Some people consider credit card debt bad and mortgage or student loan debt good.
The truth is that having any debt means you are financially beholden to a creditor and you can’t put your money in your own pocket until your obligation is met.
The problem is that bankruptcy is a serious derogatory mark on your credit.
In reality, credit card debt forgiveness is rare and tricky, and can be very costly. Then you have to convince your creditors that you don’t have the means to repay your debt and your situation isn’t likely to change.Many consumers find this benefit well worth the temporary negative impact on their credit scores.offers a wealth of information about debt settlement and other debt relief options, available on our debt relief page.You ask in your question approximately how many points debt consolidation will reduce your credit score.Unfortunately, Credit scoring is too complicated a calculation for me to accurately estimate the effects of any of the different forms of "debt consolidation" I have described above on an individual's credit score. So, while your FICO score will not be impacted, your credit profile is very negatively impacted.