debt consolidation and its effect on the credit report

Date: Wed, 08/31/2005 - 06:27

Submitted by anonymous
on Wed, 08/31/2005 - 06:27

Posts: 202330 Credits: [Donate]

Total Replies: 1

My wife and I have accumulated a hefty amount of credit card debt. I've put us on a payment plan a while ago from info and debt calculators that I found on the web and have been steadily paying them off and making good progress. No one has been knocking down our doors or calling us, but it is always something that hangs over our heads. We want to buy a house eventually and I am sure that our debt-income ratio would cause headaches when we apply for house loan.

I am always considering some kind of debt consolidation program to speed up the process, but there are so many that come up when I google it that I don't know how to choose one that is reliable. I thought about talking to a financial planner or our accountant, but I don't know if they are the proper people to talk to.

We have about 40K in CC debt and would like some advice on which avenue we should investigate. What organization(s)/sites should we be talking to and how does using a debt consolidation or related organizations affect our credit rating? I read that using this service will show up on our credit report and I am concerned that it will red flag us or something when someone has to look up our credit score/rating.

We live in NJ.
Thanks in advance.
Jerold.

Hi Jerold Welcome to the forums. If you are considering for d

Hi Jerold

Welcome to the forums. If you are considering for debt consolidation program, you are seeking to improve your financial standing. Your credit report might be having some negative entries which need to be recuperated. Debt consolidation program will cover all the unpaid accounts in the program, making regular payments to the creditors and as a result provide you a better financial rating.

Debt consolidation program will be shown in your credit report and your creditors will appreciate that you have taken this responsibility to clear off your past debts and regain your financial worthiness. They will come to know that you have experienced financial difficulties in the recent past and you have taken active steps to repair it through the debt consolidation program.

Your creditors report your accounts to the credit bureaus. Although your report will show that you have been unable to pay the original amount of the creditors and have accepted the reduced amount through the debt consolidation program, the consultant working in the debt consolidation program will be able to negotiate with your creditors for the best of your credit ratings.

The ultimate goal of the debt consolidation program is to improve your financial and credit standing and as long as you are current in the debt consolidation payments, you will be viewed more favorably than before.

You can speak to the debt advisors for specialist advice. The counseling offered will be completely free of cost.

Regards
Roxette

lrhall41

Submitted by roxette on Wed, 08/31/2005 - 11:35

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