Does consolidating credit card debt hurt credit score


06-May-2017 18:14

You are only restructuring your debt, not eliminating it.You don’t need debt rearrangement, you need debt reformation.But let’s be honest: Your interest rate isn’t the main problem. This specifically applies to consolidating debt through credit card balance transfers.The enticingly low interest rate is usually an introductory promotion and applies for a certain period of time only. In almost every case, you’ll have lower payments because the term of your loan is prolonged. Your goal should be to get out of debt as fast as you can!Their behavior hasn’t changed, so it’s extremely likely they will go right back into debt. The debt includes a two-year loan for ,000 at 12%, and a four-year loan for ,000 at 10%.Your monthly payment on the first loan is 7, and the payment on the second is 3. You consult a company that promises to lower your payment to 0 per month and your interest rate to 9% by negotiating with your creditors and rolling the two loans together into one. Who wouldn’t want to pay 0 less per month in payments? The truth: “I proved that myth is not true,” says Kenny Golde, author of “The Do-It-Yourself Bailout.” Golde is a filmmaker whose partner became ill and died while they were making a movie. “If they’re making 0,000 a year and just don’t feel like paying their bill anymore, that’s not going to be acceptable,” Gordon says.

Fraudulent debt settlement companies often tell customers to stop making payments on their debts and instead pay the company.

Most of the time, after someone consolidates their debt, the debt grows back. They don’t have a game plan to pay cash and spend less.



Jun 7, 2017. Consolidation means that your various debts, whether they are credit card bills or loan payments, are rolled into one monthly payment. If problems with debt have affected your credit score, you probably won't be able to get low interest rates on the balance transfer, debt consolidation loan or home equity.… continue reading »


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Jan 7, 2013. My credit union is offering debt consolidation loans with a lower rate than any of my cards—should I take that, use it to pay off all of my cards, and only have. Do the math on your credit cards and their interest rates, and figure out how long it would take you to pay them all off at your current payment rate.… continue reading »


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The truth Debt settlement can hurt your credit score almost as much as bankruptcy. Although asking for a settlement on your own won't hurt your credit score, succeeding in getting a settlement – or skipping payments as some settlement.… continue reading »


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