Question : Debt consolidation will leave you with a huge debt ratio, and close all your credit cards?
When you consolidate debt, it shows all old debts as being paid, etc, but the one new debt ratio, which is the amount being owed to the consolidation company will be huge. QUESTION: Does It lower the credit score to have a huge debt ratio like this?OTHER QUESTION: and you also want to have say, 3 credit cards, (3 of them is the number you want to have a good credit profile, right), then the debt consolidation companies close your credit cards or do they not? How does it work
- asked by Sprocketts K
All Answers:
Answer #1
ANSWER: Pay your bills!OTHER ANSWER: Pay yourbills!
- answered by kevin h
Answer #2
first of all debt consolidation only consolidateswhat you tell them too. They can't get access toall your debts so the answer is no. if you have 15accounts and you only need to consolidate 10 ofthem because the other 5 are on time or close tobeing paid off, or you just aren't going to paythem off, they wont know unless you tell them andgive them the account numbers. No you do not closeyour credit card accounts. you can just not takeon any new debts like car, mortgage, loans andother larger debts. My mother in law did it andshe was still able to use her credit cards... butshe may not have had them consolidated. But if youare trying to pay off those cards then it would bedumb to continue using them.
- answered by J'adore
Answer #3
No it does not up your score.Providing youconsolidate and lower your repayments, you couldtry continuing to pay the new lower payment debt,by paying as much as you were paying beforeconsolidation.That will increase your principalpaymentand continue to lower your interest :princiapl ratio
- answered by Gordon D
Answer #4
The temptation is to have lower payments, but thatdoes mean you'll take longer to pay off the debts,and so you'll end up paying a huge amount more ininterest rates over time. Possibly thousandsmore.Be careful--think this through very carefullyand do the math.
- answered by calalum1996
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