I am in the process of debt consolidation and after this debt is paid off, is my credit back on track?
Question:
Not necessarily. You will then need to start building good credit to help you from the bad that you had.
You have to start rebuilding your credit rating from scratch. You can't expect relistically to resume where you left off, prior to going into debt and were unable to make credit card payments.
Not neccessarily. (1) Hopefully, you have a credible debt consolidation team that doesn't hold back your first payment as a fee. If they do, then your other accounts will receive another late payment which will hurt your credit. (2) The debt consolidation will close the other accounts which will make your average account age look shorter which will hurt your score. (3) You now have a new account (the debt consolidation loan) which also hurts your score since it is new (4) the consolidation company cannot legally erase bad credit so your other accounts will still be on your credit report until the 7 year limit is up. Your credit will eventually improve if you make your consolidation payments on time and even more once you owe them less than 30% of the original amount you borrowed from them. Give it sometime and don't get frustrated, it will take some time and you'll get there (just not overnight).
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-cons...
if it helps kindly remember me in your voting!.. cheers!
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