Is debt consolidation a good idea? Would it affect my credit negatively?
Question:
I worked for the industry for 4 years and yes it can. What you need to consider is what is your situation. If you are on time with your bills and just want a better rate and lower payments- stop and do not consolidate- call your creditors and work with them. If you are behind and facing harassing calls and now you can't catch up you can do two things. First call the banks yourself and try to work our a payment plan. if you had a hardship like a job loss or medical issues explain it and ask for a break because you want to get back on track- they will work with you. If you can't work it out with them or do not want to then call a reputable company. Do not pay a large fee- and make sure you get everything in writing before you send any money. They are a great help but it will be on your credit report- if they tell you they don't report it is true they don't but the banks do. Consumer Credit Counseling has been in business for about 50 years and is in almost every state- they are very low cost and will even help you with a budget. If you don;t want to use them try the website below.
Again if you are not late- stay away they will tell you it will not hurt you but it will. Good luck
www.dmcccorp.org
If I am not mistaken, when you consolidate all your debts to one single loan, you can save on interest.
Your credit will not get affected, why? Because once you consolidate your debts, these means that all these debts that you have consolidated will be "paid in full" and "as agreed".
The one of the ways that your credit report would show something negative, is either you are on collections, late payments, bankruptcy and/or Judgments; etc.
This leaves you with 1 loan only to pay and hopefully you do find a lender that will give you a very low interest rate.
Here is a link for you to look at.
Good Luck.....
Debt consolidation is always used in the last resort. That is if you're always late or unable to catch up with your payment schedule. You got no other recourse. You are having seriuos financial commitment.
Once you consolidate your debt, normally the monthly payment will be lower and even interest is lower.
However your credit rating will definitely go down and most banks or financial institution would not want to lend to you.
The next question is who want to be in debt.
We should try all means to pay off the debts.
What i think it is a good idea and when you consolidate you can save on interest and more over your credit score improves.
To know more you can visit
http://debtconsolidationmanagement.blogs...
and
http://geteasyloans.blogspot.com...
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
http://debt-trap.com/category/debt-conso...
Debt consolidation is an option, and you should look into it. Just be careful about WHAT you're getting into. Some plans, because of their higher APR rates get you into more trouble than you were.
Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option.
Take a good hard look at all the options and plans offered, and don't let a single company pressure you into something you just can't do. Make sure that you're comfortable with the plan offered before you commit to it.
In any case, it doesn't hurt to investigate debt consolidation as an option. It doesn't cost you anything to find out more information about it.
If you want a place to start your investigating, there's information and listings for debt consolidation providers on the page listed below. You'll probably find something of use there:
http://axalda.info/debt-consolidation.ht...
May be I Can Help You:
Just try:
http://www.proloanz.com/debt_consolidati...
http://www.mortgagerefinancingatlowrate.
http://www.topamericanmortgage.com/debt-...
http://www.apply4less.com/debt_consolida...
They Will Definetly Help You
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