2006-08-13 03:34:39 · 12 answers · asked by Sandra M 2 in Business & Finance ➔ Credit
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.
2006-08-13 03:38:40 · answer #1 · answered by Adios 5 · 1⤊ 2⤋
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.
2006-08-16 08:17:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No ... learn more by reading the following:
Debt Consolidation - Get Out Of Debt
http://www.askaquery.com/Answers/qn1643.html
How to Hire a Debt Counselor?
http://www.askaquery.com/Answers/qn1584.html
What is Debt Relief?
http://www.askaquery.com/Answers/qn1583.html
Debt Management and Building Wealth
http://www.askaquery.com/Answers/qn1581
2006-08-15 06:54:12 · answer #3 · answered by curtain r 2 · 0⤊ 0⤋
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.
2006-08-13 03:57:25 · answer #4 · answered by I'm_Bored 4 · 0⤊ 0⤋
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
2006-08-14 08:59:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋
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.
2006-08-13 03:48:20 · answer #6 · answered by CCTCC 3 · 0⤊ 0⤋
no longer prevalent with any credit consolidation employer (at the same time as i replaced into too deep in debt, I had land to promote to pay it off). yet I listen many horror thoughts about them taking your money, no longer paying your lenders (which completely trashes your credit), and then attempting to workout settlements (which some banks gained't put up with). So it ruins your credit, you're able to nonetheless finally end up with court docket judgements hostile to you, and as said, you're able to owe tax on any forgiven debt. So one way or yet another, you pay dearly for overspending your income. the suited ingredient you're able to do is shrink back on spending ($a million feast television dinners) pay down your expenses, and learn now to not get that deep into it back.
2016-11-24 22:58:10 · answer #7 · answered by tepper 4 · 0⤊ 0⤋
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.
2006-08-13 03:42:11 · answer #8 · answered by continentalprintingsupplies 3 · 0⤊ 0⤋
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/category/Strategies-to-Reduce-Debt-Quickly.html
Credit Counseling Programs
http://www.complete-debt-info.com/category/Credit-Counseling-Programs.html
Online Debt Consolidation
http://www.complete-debt-info.com/category/Online-Debt-Consolidation.html
2006-08-14 01:03:45 · answer #9 · answered by hen d 2 · 0⤊ 0⤋
No, what will ruin your credit is being chronically late on payments.
2006-08-13 03:41:16 · answer #10 · answered by Gitchy gitchy ya ya da da 3 · 0⤊ 1⤋