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Debt Consoildation question

Date: Mon, 03/06/2006 - 15:46

Submitted by anonymous
on Mon, 03/06/2006 - 15:46

Posts: 202330 Credits: [Donate]

Total Replies: 3


if you consolidate your debt, will this effect your credit report score. Additionally, if you consolidate credit cards will you still be allowed to use those credit cards?


Tijuana,

Few questions first, why are you looking for consolidation? You might have felt that it's getting tough to stay current with your accounts, right? Credit card minimums are on a rise. It is really difficult to stay regular with your payments.

Once a late payment enters your credit file, it will be there for next 7 years and will be hurting your credit. debt consolidation ensures regular payments, so it is good to your credit, right?

The consultant who works in the program suggests a suitable payment plan that you find easy to pursue. Your credit report might show that the accounts are under consolidation, however, once it is paid in full your file will be updated accordingly. Your counselor will help you get your credit report revised in your favor.

Credit cards will be made inactive temporarily for the sake of your benefits. If you carry the credit cards and continue imposing more debt, it will be quite impossible to get it paid in full. So the process will be elongated and the process will be time consuming.

Once the process is complete, you can again use your cards as usual. IMO, you should avail the free counseling offered by this site. The counselor will discuss all your options very well after analyzing your financial status. Keep us posted.


lrhall41

Submitted by stanley on Mon, 03/06/2006 - 16:33

( Posts: 1639 | Credits: )


I have not been late with my payments. I pay every month on time. However, the balance is not going down and I also continue to charge alot. My credit is currently in go standing and my goal is to keep it that way. I just want to be debt free and pay cash for the things I need and want without having to charge so much. Can this company help me without hurting my credit? That is my main concern, I do not want to have bad credit.


lrhall41

Submitted by on Tue, 03/07/2006 - 03:56

( Posts: | Credits: )


Quote:

However, the balance is not going down and I also continue to charge alot.


Tijuana, you have pointed out a very crucial point here. Unless you can put more than the minimums to your debts, your balance will not reduce. You will be revolving the debt from one month to next and will be paying more and more as interest. This is a big problem indeed.

I understand you are very much touchy with your credit. This is good. debt consolidation can help you achieve a good credit in the long run. As I have mentioned earlier your credit file might show that the accounts are under consolidation program for the time being. Once the process is over, your report will be updated in your favor.

???Settlement' has a negative impact on your score. The counselors working in the consolidation program will try to get your accounts reported as ???paid' or ???paid as agreed'. So it will be considered positively by your future creditors. You can go through the thread below to get more information on the good effects of consolidation-

http://forums.debtcc.com/forums/consol-result.html


lrhall41

Submitted by stanley on Tue, 03/07/2006 - 09:14

( Posts: 1639 | Credits: )