Would debt consolidation hurt our credit report/ score?
Question:
Answer:
I would think it would send up a red flag.
Plus if you consolidate (even if the interest is lower) you will be tempted to start buying again.
The question isn't clear. If you mean take out a loan and pay all of your existing debt off and then have one payment, then no it wouldn'd hurt it.
If you are talking about companies that intervene because you are having trouble making payments then yes it would.
If you own a home it might be advantageous to refinance the home and pay off the debt. You would probably have a positive tax consequence. The debt on auto payments and credit cards is not deductable on your taxes. The interest on your home loan however would be. The interest on your home loan is also significantly lower than other debt.
If you pay off other debts...credit cards, cars, school loans, etc., it would actually improve your FICO score. Do not close the credit card accounts because part of your score is based on "available" credit.
Maintain one card for emergencies, and make payments on time to keep your score high. Part of the score is also based on how you use and pay debts.
Credit Score Myths Explained
http://www.debt-loan-refinance-mortgage-...
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!
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