thinking about credit card and debt consolidation...?

Question

i really don't know how to go about it, or if i am able to do it. i have less than 2000 in credit card debt on 3 different cards, and other debts (small medical, arranged payments with a past apartment and other things...) i don't know much about it, i just think it would be nice if i could make payments for everything at once. also, will this help my credit score?

Answer 1

Consolidation will indeed hurt your score and cost you for the privilege.

Clean up your credit yourself. Make a strict budget. Eliminate all extras -- cell phone, premium cable and internet, eating out, new clothes, etc. Take every penny you can squeeze out of that budget and pay the highest interest rate credit card, while paying minimum on the rest. When the highest card is paid off, move to the next one till they are all paid off.

Then work on clearing up the old debt the same way. You should be able to clear up the credit card debt in less than a year and, depending on how much the other debts are, you could easily have all your debt paid off within 2 years.

Then you just have to make sure all you bills are paid on time. Only charge on the credit cards what you can afford to pay at the end of the month. That will keep you out of debt.

Answer 2

2000 in credit card debt is very managable. Here is a good plan to use to get out.

1) Take your card with the highest interest. Pay the most on it. Pay the minimum on the other cards.
2) Once you pay the highest interest card off do the same with the next highest card.
3) Repeat until all cards are paid off.

You will be suprised how fast this works. If you would like more suggestions and solutions visit http://www.your-credit-solution.com . They have free articles and a free ebook on credit repair.

Good Luck!

Answer 3

Actually, debt consolidation will HURT your credit score. You could put all the credit card debt on one card with no problem, but I wouldn't advise doing more than that.