how bad does debt consolidation hurt your credit?

Answer 1

Actually, it improved mine. The key about credit is paying creditors on time. I consolidated my 3 credit cards into one easy payment using a debt consolidation company. They worked with me and the credit card companies on how much I could pay per month and we set it up to automatically withdrawl from my paycheck. I wound up paying the all creditors on time, and after 4 years did pay off my debt. Overall, it increased my credit score. I would research debt consolidation companies by calling them. Make sure to contact the better business bureau for any complaints. The one I used was Profina.org. The only thing was they had me cancel all the credit cards to join...(good thing in the end). Good luck.

Answer 2

It's the same as filing a bankruptcy. (That's how a mortgage company will look at it if you are looking to buy a house.)

Most companies will advise you not to pay your monthly payments. That way the credit card companies will be willing to accept their offer. The big problem is not all credit card companies will work with a debt consolidation place. They don't have to.

The debt consolidation companies don't always pay the credit card companies on time or the agreed upon amount. If they mess up, you are still responsible for the payment, not the consolidation company.

Of course, not all are like this, but a lot are. The best thing to do is call your credit card companies yourself to see if they will be willing to work with you. Talk to a supervisor, though.

Answer 3

Make a list of all your c.cards and the balance owed.
Tally it up
Sort them from high to low.
Attack the lowest one first with all the money you cann, weeekly payments (schedule them thru online banking).
Pay all others like normal, minimum payment plus 5-10% but WEEKLY. Instead of paying $100 once a month, pay $25 each week. This will reduce your interest charges.
(You may have to sell some unnecessary items or get a second job to make this happen.
Continue attacking the cards each one after the other untill they are all gone.

Debt consolidation is nearly as bad as bankrupcy, it tells banks, creditors, etc that you are unable to handle your own money.
Getting a grip by yourself will improve your credit score much faster. You will also learn a valuable life lesson!

Answer 4

Debt consolidation should not hurt your credit rating, in fact it could improve it.
When you consolidate all your payments into one loan and then keep up the payments on that loan there will not be any negative mark on your credit rating for doing that.

Answer 5

It does not hurt your credit, infact it helps you have a good credit score:

Online Debt Consolidation
http://www.complete-debt-info.com/category/Online-Debt-Consolidation.html

Answer 6

It hasn't hurt my credit at all.I think its because the company I am with doesn't report to a credit agency.Creditors are a little more apt to accept payments from a debt consilidation company because it shows that the person realized that they were in financial trouble and made arrangments to correct the problem.Instead of behaving as if nothing is wrong.

Answer 7

It does not hurt your rating at all, in fact it helps you in the long run. Just check these articles to understand better:

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

Answer 8

For Credit and finance solutions I visit this website where you can find all the solutions. http://SMARTFINANCESOLUTIONS.NET/index.html?src=ddrmgHL63

RE :How bad does debt consolidation hurt your credit?
Follow 9 answers

Answer 9

Dept consolidation it does not hurt your credit in fact it can help you.

Answer 10

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