Better credit score. You can seriously damage your credit score with late payments, defaults and charged-off accounts. First of all, the sheer fact that you get enrolled in a debt consolidation program points to your being responsible and willing to pay your debts. Once you get a debt repayment plan, the record of it appears in your credit report and raises your credit score in near future. Once your accounts are paid in full, the consolidation company negotiates with your creditors to report in your favor.