Yes, it adversely affects your credit but less than bankruptcy. If you have not already, get the book “Your Total Money Makeover” by Dave Ramsey. Get it from the library if you don’t have the $15 to buy it.
Debt Consolidation is NOT the way to go. They just increase your costs.
If your credit is already bad, it can’t hurt. If you don’t do it, and you can’t pay your bills, that makes your credit bad too. If you have to keep from going under, it may not make it better, but certainly wouldn’t be as bad as not paying your bills at all. You should check into the company before you make a decision though. Some are not so reputable.
Debt consolidation will make you look mature with your money and the fact that you put it in the hands of a money specialist to control for you, a star in the bueres eyes. Good for you. Wish more people were that responsible with their money.
It depends if you are behind on your bills right now. If not, get a loan and pay off all bills and it just shows up as a loan and others have been paid. If you are behind right now, then that is how your credit is affected.
Are you behind now? If so that’s been reported already. If there is no way for you to manage your $, go ahead and consolidate. These companies do charge, and they can not repair your credit.
They will work with your lenders to establish a payment plan, it is the lenders choice to report it to the cred agencies, the the consolidation company
If you take a dump it affects your credit score! So yes it will in a bad way, but look at it this way if you get the consolidation it’ll affect it negativly, but if you have an emergency and can’t make all of your c.card payments that wil F**K your credit score.
yes it takes all of your debt consolidates to one low payment and pays them off a little at a time but also reprts to the credit companys that these debts are being paid. it can only better your credit but be careful at who you choose there are a lot of frauds out there
Consolidation will affect your scores negatively if you’re turning good debt into bad debt. Eg. paying off a student loan (good debt) with a credit card (bad debt.) Consolidation is always a good option; however, do some research before you close open accounts. It’s always good to have a good mixture of debt - how else will a future creditor know how you pay your bills?
The Army has bonuses up to $40,000, a $65,000 Student loan Repayment Program that pays them off in 3 years, and up to $71,000 for college after the Army, plus 100% paid while serving. Also CONAP for enrollment. 1800+ Colleges and Universities in the program. That’s alot better than a consolidation loan that will tie you up fiancially for 5 or 6 years, up to 20 if Student Loans are involved.
Debt consolidation is just taking out a loan to pay off all your other loans and then only having one loan to pay off. It’ll add one more company to your credit history and it wont wipe the others but it will show that you only owe 1 company which I guess is a plus. I’m not sure how it’ll affect the score.
11 responses so far ↓
1 Sir J
Yes, it adversely affects your credit but less than bankruptcy. If you have not already, get the book “Your Total Money Makeover” by Dave Ramsey. Get it from the library if you don’t have the $15 to buy it.
Debt Consolidation is NOT the way to go. They just increase your costs.
2 Kelly
If your credit is already bad, it can’t hurt. If you don’t do it, and you can’t pay your bills, that makes your credit bad too. If you have to keep from going under, it may not make it better, but certainly wouldn’t be as bad as not paying your bills at all. You should check into the company before you make a decision though. Some are not so reputable.
3 tonyintoronto@rogers.com
Debt consolidation will make you look mature with your money and the fact that you put it in the hands of a money specialist to control for you, a star in the bueres eyes. Good for you. Wish more people were that responsible with their money.
4 pappa_15
It depends if you are behind on your bills right now. If not, get a loan and pay off all bills and it just shows up as a loan and others have been paid. If you are behind right now, then that is how your credit is affected.
5 G. M.
Are you behind now? If so that’s been reported already. If there is no way for you to manage your $, go ahead and consolidate. These companies do charge, and they can not repair your credit.
They will work with your lenders to establish a payment plan, it is the lenders choice to report it to the cred agencies, the the consolidation company
6 jmdavis333
If you take a dump it affects your credit score! So yes it will in a bad way, but look at it this way if you get the consolidation it’ll affect it negativly, but if you have an emergency and can’t make all of your c.card payments that wil F**K your credit score.
7 waywordson68
yes it takes all of your debt consolidates to one low payment and pays them off a little at a time but also reprts to the credit companys that these debts are being paid. it can only better your credit but be careful at who you choose there are a lot of frauds out there
8 Tissa
Consolidation will affect your scores negatively if you’re turning good debt into bad debt. Eg. paying off a student loan (good debt) with a credit card (bad debt.) Consolidation is always a good option; however, do some research before you close open accounts. It’s always good to have a good mixture of debt - how else will a future creditor know how you pay your bills?
9 Mark W
The Army has bonuses up to $40,000, a $65,000 Student loan Repayment Program that pays them off in 3 years, and up to $71,000 for college after the Army, plus 100% paid while serving. Also CONAP for enrollment. 1800+ Colleges and Universities in the program. That’s alot better than a consolidation loan that will tie you up fiancially for 5 or 6 years, up to 20 if Student Loans are involved.
10 dimpalz
Debt consolidation is just taking out a loan to pay off all your other loans and then only having one loan to pay off. It’ll add one more company to your credit history and it wont wipe the others but it will show that you only owe 1 company which I guess is a plus. I’m not sure how it’ll affect the score.
11 Ben J
No, it won’t. Some good debt source for you:
Debt Consolidation - Get Out Of Debt
How to Hire a Debt Counselor?
What is Debt Relief?
Debt Management and Building Wealth