The effect of your debt consolidation on your creditors can vary. Depending on your situation, and the type of debt consolidation plan you undertake, your creditor may offer you incentives, refuse to participate in a creditor debt negotiation, and/or pursue you legally for payment of the debt.
If you take out a debt consolidation loan, the proceeds of that loan will result in debt settlement in full. Thus, while you may be happy to pay off the debt, your creditor is likely to attempt to entice you to take on more debt. Creditors make money by charging consumers interest on the credit that they extend, as well as penalties and late fees when you default. Therefore, when you pay off a debt in full, your creditor is not making money from your account. So don't be surprised if your creditor discourages you or even offers you incentives to use or keep your account open.
If you enter a debt consolidation program through a consumer credit counseling agency, the goal is to get you debt-free within a certain period of time. These programs contact your creditors and try to have the interest rates being charged on your debts eliminated, or at least lowered. Some creditors may choose to participate in such a program due to the high risk that you will default and not pay anything toward your debt. In other words, some creditors will take a lesser amount of money as opposed to no money at all. However, creditors are not required to cooperate in debt consolidation programs, and may choose to pursue you independently for repayment of the debt.
You should always consult a debt settlement attorney for all of your available options before committing to any type of debt consolidation program or loan. If you consult an attorney, you will have a much better idea as to the range of options available to you, as well as the options that might fit your situation best.