2006-10-11 16:38:49 · 8 answers · asked by sungwu231 1 in Business & Finance ➔ Credit
Going to a debt counseling service is what I warn people about. Not only will it bring down your credit scores but what the counseling service won't tell you is that the low payment you are paying them really doesn't cover the entire debt. They will also pay those bills late and the credit card companies will still report you late. It is like filing a chapter 13 in the eyes of lenders. My advice is to do your own debt consolidation by paying your creditors on a bi-weekly basis. Just take the minimum payment and split it into 2 payments. Not only do you cut down the interest that would normally be calculated on a 28 day cycle but also reduce the interest rate in haf and it will be calculated on a 14 day cycle. You will see how fast your credit scores will go up and your bills always be paid on time.
2006-10-11 17:06:20 · answer #1 · answered by steve s 3 · 0⤊ 0⤋
It can hurt your credit as consolidation will be reported in your credit report; thus affecting the credit score negatively.
Furthermore, debt consolidation is aimed at helping people with different debts by offering only 1 reasonanble interest rate and regular payment. So, there is eventually a compromise.
http://www.freewebs.com/infosource100
2006-10-12 08:37:11 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I dont think so it is bad for your credit. There are many agencies you can call them and let them know about your situation and they will try to give you peace of mind about your debt. If you seek only consultation they will give you an ideas how to manage your debt.
But if you want 'em to take your case and want to file for bankruptcy and lower your monthly payments for your Housing loan, credit card, car loans, etc. then it will be certainly bad for your credit.
2006-10-12 01:36:41 · answer #3 · answered by pesific_boy_curious_2_no 2 · 0⤊ 0⤋
in certain situations it can be. because the debt consolidation companies will report that on your credit report, so creditors see that you couldn't pay your bills seperate and that you had to consolidate them. to some that looks bad, others no problem. its up to you if you wanna take the chance.
2006-10-11 23:56:39 · answer #4 · answered by flashks 2 · 0⤊ 0⤋
When you’re ready to get out of debt, sometimes it’s hard to know which path you should take. For some people, debt consolidation will be the best option because it can allow you to group all your debt together, thereby making it easier to manage your debt – and in some cases lowering your monthly payment and interest rate at the same time. For more info visit
2014-09-05 07:28:26 · answer #5 · answered by ? 1 · 0⤊ 0⤋
I heard that it does, I don't know if your church offers it but ours recently started offering debt classes, fortunately we have a few accountants that are members and they are offering their services for free to help us get a grip on our finances. Good Luck =)
2006-10-12 00:59:24 · answer #6 · answered by whattheheck 4 · 0⤊ 0⤋
it could be disastrous if you end up with some unscrupolous companies
this is what I did and it helped me thus far
http://debt-consolidation.50webs.org
2006-10-13 00:19:03 · answer #7 · answered by Anonymous · 0⤊ 0⤋
its good for you if you have huge debts in many ways:
Ways to Consolidate Debt
http://www.debt-explained.com/category/Ways-to-Consolidate-Debt.html
2006-10-12 08:05:23 · answer #8 · answered by sing i 2 · 0⤊ 0⤋