Impact on future loans such as refinancing

There are different debt management programs. debt consolidation leaves a better impact in the credit report than a debt settlement. Bankruptcy is one more option if nothing else works.

All programs will appear in your credit report and show their individual payment history. Debt consolidation stays in the file until all the payments are done. It's based on the repayment plan fixed in the program. Debt settlement stays for 7 years and bankruptcy for 10 years. The interest rates vary from one company to another.

Your credit looks the best when you are paying the bills on your own and within the due dates. When you consider these programs for improving your credit, weigh your options and consider the amount of debt you are including in the plan. You need to do a thorough analysis because you have to get the lowest interest rate in refinancing.

here is an example from the Experian Report about how consolidations show up

GEMB/JCP
Address:
PO BOX 981131
EL PASO, TX 79998(800) 542-0800
Account Number:

Status: Open/Current, was past due 150 days.
Status Details: As of Feb 2013, this account is scheduled to go to a positive status.

Date Opened: 05/2005 Type:Revolving

Reported Since: 05/2005 Terms: NA
Date of Status: 11/2006 Monthly Payment: $65

Last Reported: 11/2006 Responsibility:Individual

Credit Limit/Original Amount:$200
High Balance: $282 Recent Balance: $192 as of 11/2006

Recent Payment:$10
Creditor's statement: Account payments managed by a financial counseling program.