Question : What exactly happens to your credit if you do debt consolidation?
I have $7,000 in debt and I have heard about debt consolidation. Does this negatively affect your credit rating? Do you get to choose how much you pay monthly or is there a set amount they make you pay? I live in Canada, if that matters.
- asked by monkeyundermypillow
All Answers:
Answer #1
When I did a debt consolidation, it went on mycredit report and some creditors viewed itnegatively and others thought nothing of it. Thecompany negotiates a price for you to pay eachmonth with your creditors and that is how much youpay each month. It usually is significantly lowerthan what you're paying now, though. I think it'sworth it.
- answered by Texas Horse Lover
Answer #2
The companies will negotiate with your creditcard's to work out the monthly payments, usuallyyou can tell the debt consolidation firm how muchyou can pay per month and they try to get it tothat amount.My husband did it and it is on hiscredit record. It has effected his scorenegatively so places that just go by the numbersit will effect.It can potentially effect yourscore more to not pay the credit card debt off soif you aren't going to be able to do so, it mightbe worth the smaller hit.
- answered by romiegalaxy
Answer #3
a debt consolidation will help your credit it willgo up after you pay them off, then you will onlyhave that one loan on your credit. you can paymonthly payments with what ever company you use todo the consolidation. if you are a member to of credit union they are the best
- answered by tracy v
Answer #4
I went online to look up your question, and here'swhat I found....I hope that it helps youout....Best of luck to you!!
- answered by Butterfly
Answer #5
Debt consolidation simply put means you areborrowing money to pay back a bunch of smallloans. While it clears outstanding debts you arestill in the same place, owing money.What’smore, the costs of consolidation loans can add up.In addition to interest on the loans, you may haveto pay “points,” with one point equal to onepercent of the amount you borrow. Still, theseloans may provide certain tax advantages that arenot available with other kinds of credit.If youwant to stop the hounding and try and improve yourfinancial standing, then the FTC recommends you doa debt counseling program.I think this also worksin Canada (hey)
- answered by Sgt Big Red
Answer #6
Be careful! I do not recommend debtsettlement/debt consolidators as I've heard toomany horror stories. They can't do anything thatyou can't do yourself....If you are really behindon your payments, you may be able to settle youraccounts for less than the full amount. If youaren't behind and you use on of thesefirms....they will deliberately NOT pay on youraccount so they will default. This puts you in aposition where settlement can be made. Bottomline: If you're already defaulting/late on yourcards....you can attempt to negotiate a settlementyourself....If you are NOT behind on your paymentsand you use one of these debt settlementfirms...they will WRECK your credit by not payingin order to attempt to negotiate....You will paydearly for this debt settlement with ruinedcredit. It's not worth it.
- answered by Slimick
| 
measure and fulfill your financial needs
