can you fix bad credit with paying it off with debt consolidation?
can you fix bad credit with paying it off with debt consolidation
Tags: debt consolidation, Consolidation, Debt, bad credit, Credit, payingRelated posts:
- Can paying old debts (five years old) be bad for one’s credit? Is debt consolidation bad for one’s credit?
- Paying for your studies (HELP loans) Business Banking, Home Loans, Mortgage Loans, Apply Online
- Bad Credit Debt Consolidation Loans: Regain your Lost Ground
- debt consolidation or pay it on my own?
- Does anyone know of a good Debt Consolidation Company that works with people with bad credit?
You can, but it didn’t work very well for me and they ended up telling me that bankruptcy would be a better Option. You can also call the credit card companies yourself and see if you can set up a payment plan and lower your APR. My friend owed $4000 and she called them, explained the situation and she only had to pay $500 on the whole bill! In this economy they’re happy to get any type of payment!
Bad credit scores can only be resolved with responsible behavior and time. Debt consolidation is effective in helping you handle your debt, in that you have only one bill to pay, rather than several. However, unless you stop the behavior that resulted in credit card debt and bad credit, the problem will continue.
If you own a home and can get a line of credit, roll all your card debt into that – then cut up your cards! That moves the debt into the kind you can write off on taxes. If you don’t own a home, find the card with the lowest interest and/or one that offers bonuses and incentives for moving balances – and put all the debt on that one card and cut up the rust of your cards. Be diligent about making the payments on time and pay more than the minimum.
If you feel like you’re really drowning, try a credit counselor. There are agencies that are free or very inexpensive.
Agreed, don’t use a debt settlement/consolidation company. See mariedanielservices.com/industrychatter.html which cites media reports on this subject.
Debt settlement itself though is worth attempting. You can get matching (or even better) results compared to that of a debt settlement firm. If you need some help and don’t know where to start, check out the website noted above for support.
Good luck!
Ask lenders for agreement to delete this items from your credit report when paying them. I recommend to get such agreement thru credit repair agency, for example this one – freecreditreport.hotusa.org