How does it work

Hi Naomi

Welcome to the forums.

Once you have included the accounts in the consolidation program, you will be offered easy payment options and lower rate of interest. After all the payments are complete, your accounts will be shown as paid in your credit report and you will have improved credit worthiness.

The most important thing that you will have to consider in this program is not to miss your monthly installments. If you miss these, you will lose all the benefits offered in the program.

The accounts that are put in the program will either be closed or frozen. The purpose behind closing of the accounts is to stop you from adding further debt in it. Otherwise, it will seem like chasing a moving target. Once you have completed the program, your accounts will again get activated.

There are many benefits that are offered in the program. You will have to draw only one check instead of making payments to each of your lenders. Most of the financial charges, late fees will be eliminated and thus, you will be offered an amount that will be much easier to pay. Not only these, the most important thing that happens is the rates of interest are reduced with your lenders. Outside the program, these rates may often seem hard to cope up with.

Please have a better view of the benefits listed in the page below:

http://www.debtconsolidationcare.com/benefits.html

You might be interested to discuss with one of the consultants here for a deeper insight. Please register yourself in the sign up page for a free consultation call.

Regards
Roxette

You will stil have an account. The consolidaiton loan will pay the balance to zero. However, you should consider closing most of your credit card accounts to prevent getting into the same situation you now find yourself in. If your balances climb again, you may not be able to get another consolidation loan. You have to be careful to preserve some equity in your realestate if at all possible. Multiple loans with your real estate equity as collateral can erase your equity.

Quote:

will my credit be fixed by paying it all of with the consolidation?

Yes, consolidation aims in improving the bad credit after all the debts are combined together into one payment plan and paid off. Your credit scores will go up after the debts are updated in the file.