If you are in alot of credit card debt is debt consolidation the right thing to do? Will it ruin your credit?
Question:
Answer:
There are Consolidation firms who will pay it off for you then you pay them at a lower interest rate, however there are all kinds of sharks out there so you want to be careful who you choose to use.
Below you will find some interesting reading on these matters:
http://credit---card.org/
cheers
What I did with my 6 credit cards was first, cut them up. Second, pay more than the minimum payment or even pay the minimum payment TWICE in the same month to reduce your interest payment. Third, take the smallest account open and pay that off first but don't close the account. Leave it open and it will improve your credit because you'll have credit that hasn't been used and is still available. Don't consolidate your debt because you'll just owe more money to the people that consolidated it in the first place.
http://finance.yahoo.com/expert/article/...
has good tips!
If you consolidate with a loan through a bank it shouldn't affect your credit. You should keep the lowest interest card and consolidate the others. On the other hand if you go to a credit counselling agency it will show on your credit for seven years cuz most lenders will stop charging you interest while your paying it down. It will be difficult for you to get credit. If you can't handle the payments try consolidating with a bank loan first. If they won't lend you the money you might want to consider a credit counselling agency. Make sure they are legitimate.
There is a great place to go with this. I was in a very similar situation.
This is getting help from real people without the use of banks or credit card companies. Good Luck!
http://www.prosper.com/join/lzc5wh...
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