Many people wonder about the negative impact a debt consolidation may have on their credit. But isn’t this like wondering how losing weight will negatively affect your health, if you are 50lbs or more overweight. Let’s face facts! You need to be really truthful with yourself. Your credit has already been negatively affected or you would not be considering debt consolidation.
The truth is that consolidation will not have a negative impact on your credit score. Quite to the contrary, it will give you a better credit score immediately. All you have to do is find a good consolidation company that will negotiate your debt with your creditors, and try to eliminate charges like late fees, penalties, and other additional fees. Once your debt has been negotiated then the company will help you find a loan for the lump sum of the debt. The money from such a loan goes to pay off your credit cards and eliminate your current debt, leaving you with just one monthly payment. This payment is often much lower than the payments you make to the credit card companies because it’s extended for a longer period of time. But once the loan is used to pay off the credit card debt, it is as if, you had a 0 balance which gives you a terrific credit score. You just have to be careful and not charge those credit cards any more or your debt will increase again.
So, you should have learned from this article that debt consolidation will in no way, negatively affect your credit, but on the contrary will have a large positive impact on your credit score.
Finally yet importantly, by a thoroughly researching and then comparing as much debit consolidation providers, you are able to determine the company that meet your very specific financial situation, moreover, besides the cheaper interest rate the debit consolidation market is offering. Nevertheless, it is advisable going with a seasoned and reliable debt counselor before making any decision, this is the way you save time because of seasoned advise & cash by obtaining the best results in a short span of time.
H. Milla G. runs the Government Debt Consolidation Loans website – where you can see his top rated debt consolidator service recommendation.
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