Can Debt consolidation hurt you?
Date: Sat, 04/25/2009 - 19:08
I have a little over 5k credit card debt, but maintain a high credit score, above 700. Will consolidating all my payments into one, cause my credit score to plumet? Is it wise to pay them all off with a loan or just one by one.
Since banks started failing, some of my credit card companies have began raising the APR's, some have even lowered the limits.
I have about 9 credit cards now and all but two are nearly maxed out.
One of my brothers went to the bank and took out a loan for $10k and used the money to pay off his credit cards, what is the advantage of going through this company rather than through my bank? (First Tennessee).
Currently I pay over $500 a month in payments, all are over the minimum required but even when i double the payments it doesn't seem to make them get much lower over time. I just want to pay them off quickly and cut them all up. Also once they are paid should i keep the accounts active, or cancel them, my goal is to sustain a high credit score without having any payments. And go back to not buying anything I can't afford right now.
Any suggestions?
Since banks started failing, some of my credit card companies have began raising the APR's, some have even lowered the limits.
I have about 9 credit cards now and all but two are nearly maxed out.
One of my brothers went to the bank and took out a loan for $10k and used the money to pay off his credit cards, what is the advantage of going through this company rather than through my bank? (First Tennessee).
Currently I pay over $500 a month in payments, all are over the minimum required but even when i double the payments it doesn't seem to make them get much lower over time. I just want to pay them off quickly and cut them all up. Also once they are paid should i keep the accounts active, or cancel them, my goal is to sustain a high credit score without having any payments. And go back to not buying anything I can't afford right now.
Any suggestions?
Taking a debt consolidation loan never affects your score. It on
Taking a debt consolidation loan never affects your score. It only lowers the interest rate compared to the rates you are paying now and you make only one monthly payment towards the debts.
Now, since you have maxed out some of your credit cards, I think that you should pay them off asap, because the "amounts owed" factor will get affected and your score may get lowered.
