How does debt consolidation affect my credit?

Hi becca-wh

Welcome to the forums. It is sad to know that you have lost your good job and now settled with a job with a lower pay. There are some hard times in life through which everyone has to go. Please do not feel sad about it for long and I prey that everything just happens nicely at your end.

Quote:

[quote=becca-wh]Had excellent credit until two years ago when I loss my very lucerative consulting job without severance due to downsizing. Six months later, was forced to sell house and relocate to obtain employment. Accepted a position with lower salary just to get back into the work force. Bills are so far behind, I cannot recover. Will debt consolidation help someone like me? How does debt consolidation affect my credit? Is it the same as filing bankruptcy?[/quote]

Hi,

Congratulations on your new job. You have definitely shown tenacity by getting back in the workplace after being let down by your initial place of employment. however, since you are back in the game, I do think that you have a strong chance to recover. With a little fiscal responsibility, you will be able to catch up to your debt in no time.

Well, debt consolidation works by lowering your monthly interest rates on your debts. the consolidation company contacts your creditors and negotiates with them to help you find a lower interest rates for your debts. This reduction in your interest rates will have a net effect of lowering your monthly payments on your debts to something more manageable for your new salary.

It is definitely not the same as bankruptcy. It is better for the record. Because with the new bankruptcy laws, you will still have to pay back the debts if you are working and you are capable of repaying them. So the only thing that this gets you is a stain on your credit record. However, with consolidation, you will be able to attack your debts directly and recuperate your credit by eliminating your debts through regular payments.

So good luck with your journey and I am certain that you will make it out on top.

This is proven to be the fastest growin crime in america. And also the hardest to protect yourself from, although there are precautions that you can take to be aware of action concearning your credit and ss#.
I know of a company that has very reasonably priced protective coverage that monitors your idenity and notifys you when there is suspicious activity etc. If any one is interested, it is very affordable and worth it in the long run! you spend less than $10.00 a month, and there are many ammenities that are included with the "identity theft insurance"

Hi Kathi

Welcome to the forums. You can also contact the fraud alert department in each credit bureau and the alert in your credit file will be activated.

The fraud alert once activated remains in your credit file and can be re-activated when the time runs out.

Experian - 3 months
Equifax - 6 months
TransUnion - 12 months.

You can also apply for a 7-year victim statement. For this, you will have to provide proof that you have been a victim of fraud.

Regards
Roxette