Can debt consolidation ruin your credit?
Answer:
No, it will not ruin your credit. However when you apply for new credit, lenders will see on your credit report that you need outside help to manage your obligations, which they will consider a negative factor.
No, what will ruin your credit is being chronically late on payments.
may not "ruin" you credit, but it certainly is not helpful!
yes.if you don't pay it off before you get any more credit.
no.if you use it to get your credit all taken care of before applying for any more cards or loans.
creditors will actually look at this as you finding a way to manage your credit, which is good. but, again, make sure you do not look to get yourself back in this mess.
Yes. For credit purposes, it's the same as filing bankruptcy.
They advise you not to pay on anything. They negotiate with your credit card companies. They don't always pay on time or correctly. Not all companies will accept their deals, either. They don't have to.
It's just best to pay them off one at a time. Gather all your new statements together. Write down the balances, smallest to largest. Throw the most amount of money at the smallest. Don't worry about not paying minimum balances on the others. They'll have a fit, but if your credit is bad already, it doesn't matter. Just pay something.
Paying smallest to largest lets you see the progress you make a little faster. You can eat an elephant one bite at a time.
Only if you don't make the payments..
YES! The negative info will stay on your credit report for seven years from when you finished paying it off, whereas with bankruptcy, it is only 7 years from the discharge.
Also, you are dependent on the consolidation co. to pay your creditors on time -- and you have little recourse if they don't. And,despite what they say, collection calls may continue.
If you're really in the hole, you may want to take a closer look at bankruptcy.
Nope..Try to pay on time.
Here are some strategies to reduce your debt:
Strategies to Reduce Debt Quickly
http://www.complete-debt-info.com/catego.
Credit Counseling Programs
http://www.complete-debt-info.com/catego.
Online Debt Consolidation
http://www.complete-debt-info.com/catego.
I think the whole idea of debt consolidation is to get you get of financial trouble. Two articles in my resouce box has some input about consolidating your debt with bad credit situation.
Hopefully it will be helpful
Good luck
No . learn more by reading the following:
Debt Consolidation - Get Out Of Debt
http://www.askaquery.com/answers/qn1643.
How to Hire a Debt Counselor?
http://www.askaquery.com/answers/qn1584.
What is Debt Relief?
http://www.askaquery.com/answers/qn1583.
Debt Management and Building Wealth
http://www.askaquery.com/answers/qn1581.
Being in debt and not being able to pay your bills hurts it more than using a debt consolidation firm. I recommend the Consumer Credit Counseling (CCC) in your state if you chose debt consolidation. They are a non profit organization that have been around more than 20 years.
Using a debt consolidation firm can effect your over all credit score in a positive way, ie, you debts are getting paid and that looks good, but most companies won't give you any credit while you are using one of these firms because it's a good sign you are over extended already. I am a former employee of the consumer credit industry.
I had 3 different loans and trying to juggle all the payments with my wage was a little impossible so I had to consolidate these loans this process is called debt consolidation.
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is an online ebook I found after doing a google search :
http://umgarticles.atspace.com/debt-cons.
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