2006-11-12 04:49:36 · 10 answers · asked by natasha 2 in Business & Finance ➔ Credit
The question is, are you planning on using a loan and consolidating your debt? or are you planning to use a debt consolidation company? The first doesn't hurt your credit. The second (using a company) does... big time!
I've had clients that have gone the debt consolidation route and they were turned down for financing. THey didn't understand because they consolidated so they could pay their bills and yet they were being treated like they had walked away from their responsibilities.
The thing you have to consider is that a debt consolidation works similar to BK 13 (which is that you pay pennies on the dollar - sp the creditor isn't being paid in full). The difference is that with the BK once you've paid it off, you have all the collections and everything removed from your credit as part of the BK (you still have the BK on your credit report for 10 years but not all the little dings - you can buy a house two years after your BK is discharged) They don't have to do that in a consolidation.
2006-11-12 05:14:13 · answer #1 · answered by Dawn J 4 · 0⤊ 0⤋
Be careful. A lot of debt consolidation offers take unsecured debt (such as credit card debt) when they can try and get money back but not take your house, to a secured debt on your house, which means if you have trouble paying they can take your house. If you are moving your debts all to one place you really need to also look at how you got those debts and how you are going to prevent it happening again. You should really get rid of all credit cards so you don't run up any more debts and only use a debit card. Here in Britain there are several organisations that offer help with debt. Find one where ever you are and talk to a debt counsellor before you do anything.
2006-11-12 04:57:17 · answer #2 · answered by happyjumpyfrog 5 · 0⤊ 0⤋
You should consolidate if you have debt. And it will not hurt your credit--more likely, being late on your payments or having too many cards open will negatively affect your score. Debt consolidation services can contact your credit cards and lower your interest rates, sometimes taking thousands of dollars and many years off your debt. Your monthly payment is almost always lower, and it feels good to have someone who understands what you're going through and wants to help you make a clean start in your personal finances. It was the best decision I ever made!
2006-11-12 04:55:19 · answer #3 · answered by Someone who cares 4 · 0⤊ 0⤋
Debt consolidation will not hurt your credit, but in general people who are looking to consolidate their credit have bigger problems than their credit rating.
Becoming financially responsible is what your goal should be. If part of that plan involves consolidating your debt to make it easier/cheaper to pay off then go for it. If it is just a way to reduce your monthly payments so you can spend more or run your credit cards back up then it will be a loser in the long run.
2006-11-12 05:01:46 · answer #4 · answered by Anonymous · 0⤊ 1⤋
yes anything that you decide to do at this point in regards to a debt consolidation program will have some sort of an impact on your credit profile. you can settle your accounts which is the quickest way out of debt therefore helping you to establish your credit faster after the program is completed,
a debt settlement company is represented here for you at http://www.fdnsolutions.com
2006-11-12 07:21:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Debt consolidation won't necessarily affect your credit - it might even help. Check out this website which has more information about this. Good luck!
2006-11-14 11:29:09 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I would consolidate it all by "selling the debt" to some
clever company with whom you can discuss a better interest rate, they pay your debt off for you then you just pay them, they get some good interest, you pay a lower interest... both win.
But you don't want to trust just about anybody, read up on it, get ammo first then it'll be easier, here you'll find tons more info than I could possibly
post here. It'll take a bit but it's your money and well worth
taking your time over it
http://credit-cards.ebookorama.com
and here http://finance.ebookorama.com
also plenty more to read here
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
if you get any luck please don't forget about me lol, hope it helped you!
2006-11-13 13:00:06 · answer #7 · answered by ken_voss12345 4 · 0⤊ 0⤋
I have heard that debt collection hurts your credit just as much as filing bankruptcy. You might want to call a lawyer before you do anything.
2006-11-12 04:51:53 · answer #8 · answered by Tina 3 · 1⤊ 0⤋
I am not crazy about that but if you have to the answer is no.
Best is to try to pay your debt as fast as you can its almost impossible to pay off credit cards paying the minimum payment.
2006-11-12 04:55:05 · answer #9 · answered by John 2 · 0⤊ 1⤋
realestatedawn is right
2006-11-12 09:36:43 · answer #10 · answered by Anonymous · 0⤊ 0⤋