Debt Problems
What if I consolidate all my debts into one payment?
Well, I am not sure if I consolidate all my bills into one payment will that ruined my credit or not? Also for example, if I choose "Credit Guard" what will they benefit from me that they would want to help me? Is that a good idea because I am tired of paying for my debts and I never see any money from my paychecks. I know it was my fault, but now I want to get out of debts. If any one can help clarify these questions for me because I am very clueless about these things.. Thank you
Public Comments
- I believe your on the right track with this. Consolidating will reduce your repayments to one figure you have to repay. This can be a good thing if you do not overspend on the money you are saving. I have put the url for you that discusses exactly this and it has a free shareware debt management strategy software program that shows you how to manage your income and repay your debts using proven strategies.
- Undergoing debt consolidation is the only option for many people, short of filing bankruptcy. It can appear on your credit file as in financial counselling for 3 years, and shows a willingness to take responsibility for your debts. Be sure to deal with a reputable company - check with your Better Business Bureau first - as some companies are unlikely to make your payments on time, and that can cause additional negative reporting on your credit file. Make sure that you make your payment to the credit counselling company on time, as well, as it is very important to getting back on track.
- consolidating will not ruin your credit. i don't know what credit gaurd is but if it's a credit counseling that pays your payments and you pay one pmt. that is considered like a bankruptcy on your credit. go to a bank to consolidsate
- Be very careful where you go for a consolidation loan. Some of those companies do not pay your bills on time, and some are down-and-out ripoffs. No your credit will not be ruined if you do a consolidation loan in most cases. Your creditors will receive their payments, and your credit will be good (see exception 1st paragraph). Reputable consolidation companies will make certain that you do see something from your paycheck--they cannot leave you penniless. They can get your monthly payments reduced, and get the interest taken off. As far as what they get out of it--I'm not sure. If it is a loan, you will be paying them interest. Perhaps some of the credit card companies give them something for getting your bills paid at all. Good luck, I hope they do a great job for you.
- I think consolidating your bills into one will not hurt you specially if you are already behind on payments and over the limit. If you consolidate your bills into one payment that is sent by an agency they send the payment monthly on time and that helps your credit. Of course you can't get more credit cards while on this program. If you go to a bank and obtain a loan to consolidate your bills, this is good also because you can ask them to help you send the payment to your creditors to pay off your accounts with them and then you just pay one payment to the bank. Talk to your bank. But consolidating your bills I think would be a good idea.
