Debt consolidation can close your credit cards, but only in certain cases. Learn when and why.
Why Accounts Get Closed on a Debt Consolidation Program
Consolidated Credit’s Financial Education Director April Lewis-Parks explains why credit card accounts will be closed when you enroll in a debt consolidation program through a nonprofit credit counseling service like Consolidated Credit.
Laura from Independence, Kentucky asks if she has to close all her credit cards if she joins the program or if they stay open. You have to close all of the cards you put on the program. Creditors don’t want you to use the cards when you’re having a benefit from a debt management program. But if there’s a card that you can keep out of the program, you can do that. You can keep the card out and use it for emergencies.
Do you have questions about debt consolidation? Just ask our certified credit coaches!