Thinking of debt consolidation and its effect on the credit

Hi Leo,

debt consolidation program does not hurt the credit file of an individual. Your ultimate goal should be to complete the payments with your creditors and the debt consolidation program makes this process easier.

This matter has been discussed intricately in the thread given below.

http://forums.debtcc.com/forums/pros-cons.html

If you have any queries, please ask in the forums.

I am in a debt consolidation program. A law firm is drawing money into two trust funds that will go toward two cards with Citibank. But am I supposed to just stop paying the Citi cards? I let it go into default and then the law firm takes over and negotiates the settlement?

Does this sound right?

Hi anonymous32

Welcome to the forums.

The debt consolidation program can serve the purpose even if your accounts are in defaults or your payments are past.

If you are paying to your creditors regularly, you should not stop paying to them. The consultant will negotiate with the creditors and reduce the rate of interest on the total amount of your debt.

Thus, while making the regular payments to your creditors, you will be offered a lower monthly payment through this program.

The skillful negotiations with your creditors will help in clearing the total amount of your debt and you will be able to achieve a debt free life within a quick period of time.

Regards
Roxette