What effect on one's credit rating of consolidating debt?
Re: What effect on one's credit rating of consolidating debt
Hi yanfred,
[quote=yanfred]What is the effect on credit of using a debt consolidation service to reduce interest rates and monthly payments? Our credit rating is important to us, and we have never been late on a payment. Our credit rating has, however, suffered from approximately $100,000 in credit card debt, the proceeds of which were used to purchase equipment for a business venture.[/quote]
The consolidation company doing services for you plays the most important role. A good company will bargain hard for your good credit rating. At the end of the program the creditors are the ones who can report your bad credit as good. With negotiation many things are possible. Always remember to go for efficient and reliable companies.
Thank you,
Simon
RE:
Hi yanfred,
Welcome to the debt consolidation care forum.
Quote:
What is the effect on credit of using a debt consolidation service to reduce interest rates and monthly payments? |
The moment you enroll with a debt consolidation firm the debt consultant starts negotiating with the creditor on your behalf. All your multiple debts are consolidated into a single amount. In most cases 40%-60% of your total debt amount is reduced. Your late fees are eliminated and your interest rates are lowered. Debt consolidation packages have gained popularity over the time and saved the lives of hundreds of debt struck people across the nation.
Quote:
Our credit rating is important to us, and we have never been late on a payment. |
:D This is great to learn that you are conscious about your credit rating. It is also highly appreciable that you make your payments on time. Debt consolidation not only frees you from the chains of debts but also takes care of your credit score. Be assured of this fact before you opt for a debt consolidation program.
Quote:
approximately $100,000 in credit card debt, |
credit card debts are categorized as unsecured loans and debt consolidation programs deal with such loans only. So, don't hesitate but go for debt consolidation and become debt free within a short time with minimal payments.
We would appreciate your presence more frequently in the forum and hope that you share your experiences with the other members.
Regards,
Jason
