Does debt consolidation hurt your credit in any way?
Answer:
it's like filing chaper 13 bk
I think your referring to a debt management company. A debt consolidation would be to get a loan for the total amount of all your debt. I am with a debt management company www.familycredithelp.org and it has not hurt my credit at all. If anything it has helped my score because I pay my bills directly through the debt management company and then they dispurse the funds to each of my creditors.
it won't hurt it but i'm sure depending on your debt- it will take a while for you to get out of it this way- i would pay the debt my way on my terms and not with another company's help. While they will help you get out of it- they will charge you a service fee (they usually tell you they won't but they do!)
NO! It only helps! I went through a DC agency.they did charge me $9.00 per month, but I called to ask to have it lowered and they wanted to know what I COULD contribute, I told them not much so they took it to $0! It NEVER showed up on my credit report AT ALL! Just showed that I made a timely payment every month! It has helped tremendously!! I in turn paid it all off early and the credit cards were closed in good standing! I went through In Charge debt solutions, you can search it online! Your medical bills should not be reported to the credit bureau unless you are unreachable! You can send them $5.00 per month and they have to consider you current! You can set that up through the doctor or hospital accounting office! Call them and tell them you can only afford $5.00 per month! They HAVE to accept that! They may also lower the balance if you qualify financially!! I had an $18000.00 hospital bill lowered to $1000.00!! Hope this helps!
There's a lot of interesting articles about that on http://debtconsolidation.hammocksurvival.
Go take a look.
It depends on what kind of debt consolidation you go for.
Most debt consolidation companies offer a range of different options depending on your circumstances.
Debt consolidation loans can be unsecured or secured although larger loans (more than £5,000) are easier to get if you are a homeowner. A debt consolidation loan is aimed at lowering the interest that you pay. This will not harm your credit rating in any way unless you fail to meet repayments.
A Debt Management Plan is where a Debt Management company negotiates lower monthly repayments based on what you can afford. Many creditors may freeze interest but some will not and some may impose charges. The point of a Debt Management plan is not so much to reduce your interest but to reduce the amount you have to pay every month down to an affordable level. Your credit rating may be affected by this kind of arrangement but you will be paying your creditors back regularly and this should be recorded on your credit file. You should not enter a debt management plan if you think that you can afford all of your monthly repayments as they are. If you are currently not paying some or all of your debts a debt management plan may actually improve your credit file.
An IVA is also one of the options offered by many companies. IVAs are a serious matter and commit you to repaying your debts over a 5 year period. An IVA is only suitable for people with more than 15,000 of unsecured debt and will affect your credit rating however interest will be frozen and you will not have to pay any more than you can afford.
For more information on the above options please visit
http://www.debt-line.org.uk
for tips on how to avoid getting yourself any deeper in debt you may also find this helpful-
http://www.flmloans.co.uk/debt-help.php.
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