Question by Sandra M: Can debt consolidation ruin your credit?
Best answer:
Answer by dale
No, it will not ruin your credit. However when you apply for new credit, lenders will see on your credit report that you need outside help to manage your obligations, which they will consider a negative factor.
What do you think? Answer below!
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No, what will ruin your credit is being chronically late on payments.
may not “ruin” you credit, but it certainly is not helpful!
yes…if you don’t pay it off before you get any more credit.
no….if you use it to get your credit all taken care of before applying for any more cards or loans.
creditors will actually look at this as you finding a way to manage your credit, which is good. but, again, make sure you do not look to get yourself back in this mess.
Yes. For credit purposes, it’s the same as filing bankruptcy.
They advise you not to pay on anything. They negotiate with your credit card companies. They don’t always pay on time or correctly. Not all companies will accept their deals, either. They don’t have to.
It’s just best to pay them off one at a time. Gather all your new statements together. Write down the balances, smallest to largest. Throw the most amount of money at the smallest. Don’t worry about not paying minimum balances on the others. They’ll have a fit, but if your credit is bad already, it doesn’t matter. Just pay something.
Paying smallest to largest lets you see the progress you make a little faster. You can eat an elephant one bite at a time.
Only if you don’t make the payments..
YES! The negative info will stay on your credit report for seven years from when you finished paying it off, whereas with bankruptcy, it is only 7 years from the discharge.
Also, you are dependent on the consolidation co. to pay your creditors on time — and you have little recourse if they don’t. And,despite what they say, collection calls may continue.
If you’re really in the hole, you may want to take a closer look at bankruptcy.
Nope…….Try to pay on time….
Here are some strategies to reduce your debt:
Strategies to Reduce Debt Quickly
http://www.complete-debt-info.com/category/Strategies-to-Reduce-Debt-Quickly.html
Credit Counseling Programs
http://www.complete-debt-info.com/category/Credit-Counseling-Programs.html
Online Debt Consolidation
http://www.complete-debt-info.com/category/Online-Debt-Consolidation.html
I think the whole idea of debt consolidation is to get you get of financial trouble. Two articles in my resouce box has some input about consolidating your debt with bad credit situation.
Hopefully it will be helpful
Good luck