There is a huge difference between debt consolidation and debt management (credit counseling). With debt consolidation you take a debt consolidation loan and pay off your creditors and end up with a new creditor and one payment. This does not impair your credit rating. If you enter into a debt management plan, your interest may be reduce or eliminated and will have to pay one payment to the credit counseling agency. The agency pays your creditors. Debt management impairs your credit rating.