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How does debt consolidation effect my credit score?

Date: Fri, 03/03/2006 - 09:11

Submitted by anonymous
on Fri, 03/03/2006 - 09:11

Posts: 202330 Credits: [Donate]

Total Replies: 4


I am $67,000 in CC debt. My monthly minimums are $1300/month. All the cards are between 10% and 20% interest. I can barely meet the minimums, yet the principal hardly drops, so I am interested in consolidating. I have never had a late payment, so my credit is solid. I just don't know if colsolidation will hurt my credit. I am looking to buy a home very soon and am wondering if I should avoid consolidation until I get the home or will it not have any affect on my home qualifying? Thank you.


ghart999,

Considering your debt amount I would suggest you to avail the free consultation with this site. You have said that you hardly manage the minimums and perhaps you know credit card minimum payment is rising now. So it is better to ensure regular payments before any negative entry like late payment enters your report. And debt consolidation definitely does that.

Once you enter in the program, the counselor offers you such a payment plan that fits your budget. So you can easily afford it. The plan will be designed in a convenient way so that you can put some money towards the principal too. So it will accelerate the repayment process and you will become debt free sooner.

By placing your accounts under consolidation program, you show your interest and willingness to pay your bills. Your future creditors will definitely understand that you had some financial hardship, but you were attentive to your bills too. This is obviously a positive sign. And once your accounts are paid off in full, your credit report will be updated accordingly lifting your score high.

You can go through this thread for more information-

http://forums.debtcc.com/forums/effects.html


lrhall41

Submitted by stanley on Fri, 03/03/2006 - 09:37

( Posts: 1639 | Credits: )


Guest,

Ghart99 is trying to pay his bills first. Once all the bills are paid or the accounts are in good condition, he can easily qualify for a loan. Since all the previous loans will be paid off at that time, it will be easier for his to pay the new loan back.

If you have any more doubts, feel free to ask here.


lrhall41

Submitted by stanley on Sat, 03/04/2006 - 09:27

( Posts: 1639 | Credits: )