I doubt that would be the case. The main impact will be from closing those accounts. FICO doesn’t take into account that you are in credit counseling when calculating your credit score. In other words, you don’t get penalized specifically for credit counseling like you would for, say, a late payment or bankruptcy. Plus you’ll hopefully be learning how to live debt free so you don’t have to rely on credit cards again.
Through a nonprofit credit-counseling agency, you can work with a counselor to resolve your financial problems on your own, says Bruce McClary, vice president of public relations and external affairs at the National Foundation for Credit Counseling. Or you can enter what’s called a debt management plan. Through that plan, you can consolidate your credit card payments and get the cards’ interest rates reduced, making your financial obligations easier to tackle.

Credit card debt is not the only type of debt that you can include in a debt management program. You can consolidate almost any type of unsecured debt, not including student loans. This includes debt consolidation loans, unpaid medical bills that have gone to collections, and even some payday loans. If you’re struggling with student loans, then you will need a specialized type of debt relief.
American Consumer Credit Counseling (ACCC) is a nonprofit debt relief agency offering consolidated credit counseling and consumer debt solutions. If you have debt to consolidate, we can help you consolidate credit without taking a loan or paying high fees like some debt management companies charge. A fair, effective debt reduction service, our debt management program simplifies your payment responsibilities and often results in reduced interest rates from your creditors. As a leading national debt consolidation firm, ACCC has also been approved by the Department of Justice to provide credit counseling for bankruptcy both the pre-bankruptcy credit counseling certificate and the post-bankruptcy debtor education.
The debt management program itself is not reported to credit bureaus and does not factor into credit scores. The largest % of anyone’s credit score is payment history and with a debt management program, our goal is to make on time payments to liquidate your debt in a reasonable amount of time. Initially, your score may dip when lines of credit are closed, however, people on a debt management program typically see their scores increase over time as they make on-time payments each month.
Hybrid loan option: CommonBond offers a unique “Hybrid” rate option in which rates are fixed for five years and then become variable for five years. This option can be a good choice for borrowers who intend to make extra payments and plan on paying off their student loans within the first five years. If you can a better interest rate on the Hybrid loan than the Fixed-rate option, you may end up paying less over the life of the loan.
McClary advises following the 50-20-30 rule of budgeting: Allocate up to 50 percent of your budget to fixed expenses like mortgage, rent and car payments; 20 percent to savings; and 30 percent to variable expenses, especially discretionary spending for things like hobbies, recreation and dining out. That 30 percent zone is the first area to target for cutting back, McClary says.
Do yourself a favor, if you were ripped off like me by National Debt Relief, submit a complaint to ConsumerFinance.Gov. My lawyer counseled me on this. When I called from my job, they did not disclose they were a for profit agency, I had to ask them. They did not tell me the percentage that they would take as profit. I did not learn that until about 3 weeks ago when I demanded to know the profit they took. Their answer after a long time of questioning was they took 25% off the original debt for themselves. When I said that I did not know this. Their response was : “it is in page 3 of the contract.” I could not find this information anywhere nor it was said to me. The representative who enrolled me Berlinda C only said ” We take a small fee” but would not specify the amount. So far, they have taken from me $2,500 and my creditors have hardly seen any money. When a settlement is negotiated, they take everything they have taken from my account for themselves and on top of that charge about $60 monthly extra in order to make the payments to the creditors. I find this sum exorbitant. I now closed my account with them because I have realized the rip off that this company is. I have lost $2,500 for their profit.
My daughter has major college loan debt. We have helped pay a couple of loans,but cannot pay them all. She is working three jobs,trying to get her Spcial Ed teaching degree,and is living back home with us. She will be 27 in November and feels like she will never get out of this vicious cycle.She has negotiated some of her loan’s interest rates down,but is now considering bankruptcy.is it true that you can’t file bankruptcy on student loans? This is a nightmare for so many young adults. I think that it is a major part of the economic woes in this country.

SoFi has taken a radical new approach when it comes to the online finance industry, not only with student loans but in the personal loan, wealth management and mortgage markets as well. With their career development programs and networking events, SoFi shows that they have a lot to offer, not only in the lending space but in other aspects of their customers lives as well.
Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.
The Financial Consumer Agency of Canada (FCAC)[8] advises Canadians to do their research and find a trustworthy organization and a qualified counsellor. They suggest making sure an agency is in good standing with a provincial or national association. They recommend looking carefully at the agency's advertising to see if it sounds too good to be true. Claims or misrepresentations to look out for can include repaying only a fraction of your debt, quickly fixing your credit score, or claiming to be part of a government program. They also suggest consumers inquire about an agency's services, costs, and counsellor qualifications.[9] The FCAC has also warns Canadians to be careful of companies offering to help them pay off their debt or repair their credit. Things to watch out for include guarantees to solve debt problems and using high interest loans to pay off debt. Some of these companies also claim that they can file a consumer proposal on behalf of a consumer. However, the FCAC points out that only a qualified licensed insolvency trustee can help someone with a consumer proposal or bankruptcy.[10]

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If you have poor credit/no credit, unfortunately you won’t likely be able to qualify for many of these other options. However, there are a number of companies that specialize in helping people exactly like you. These companies are called “Debt Relief” services and are for those with over $7,500 in credit cards, medical bills, taxes, and other unsecured debts and poor/no credit. 
In fact, certain aspects of a debt management plan will have a positive impact on your credit score. These aspects are the amounts owed, payment history, and inquiries for new credit.  Your payment history, which makes up 35% of the FICO credit score, will have a positive impact assuming your payments are made every month. In terms of amounts owed, which makes up  30% of the Fico score, this aspect will be positively impacted as the accounts are paid down.
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