...credit cards? When you consolidate debt, it shows all old debts as being paid, etc, but the one new debt ratio, which is the amount being owed to the consolidation company will be huge. QUESTION: Does It lower the credit score to have a huge debt ratio like this?
OTHER QUESTION: and you also want to have say, 3 credit cards, (3 of them is the number you want to have a good credit profile, right), then the debt consolidation companies close your credit cards or do they not? How does it work

yes they close your credit cards and yes it affects your credit. If you do a debt consolidation I have heard this stays on your record for like 7 years and this really messes up your credit score. The debt consolidation services usually negotiate your debt with the creditors. For example if your total is 10K they will negotiate it down to like 6K, and then they will charge you about 1 or 2 K so you will still pay back less. But this will kill your credit for about 7 years.

The other way is the companies that don't consolidate, what they do is speak to each of your credit cards and have your minimums reduced and your interest reduced as well. On a 10K debt you pay about 2 or 3 hundred monthly and put it in a bank account. They take it from there and dispurse it among your creditors. This is an easy way out but it does show up on your credit score for about 2 years. Less damging than the previous but it is a way out. If you are not planning on buying a house anytime soon, this may not be so bad. Good luck to you