I want to consolidate debt keeping my credit in good shape

Hi Amber

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.

Regards
Roxette

Okay I'm confused again Roxette..the debt consolidation company I spoke with told me that the entire balance of the card would be paid off, just at a much lower interest rate. That by trying to reduce the balance it would be considered a "settlement" and unfavorable. Can you clarify?

Insist the consultant that the creditors should not report your accounts as 'Settled' to the credit bureaus.

It will be most preferable if your credit report shows 'Paid in full' or 'Paid as agreed'. These two remarks will maintain your credit worthiness and you will be acquiring new credit with ease in the future after completing your payments with the present creditors .

Ask the consultant to get in writing from the creditors that they will be updating with any of the two remarks mentioned. 'Settled' should not appear in your credit report in anyway as it is considered a negative remark and will remain in your file for the next 7 years.

Regards
Roxette

Thanks Roxette..
So my consultant has said that it will be "paid in full" but the amount that I pay will be in full. There will be no reduction in the balance of the card. Whereas a settlement company can REDUCE the balance by 40 to 50%. Are there also consolidation companies that can reduce the balance?
Thanks again!!

Please insist your consultant to get the financial charges or late fees wiped off from the total amount of your debt. This is one of the benefits that you will get in the consolidation program. This reduces the total debt by a great deal.

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

thanks for clarifying!!

You are welcome :)