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What do you think are the pro and cons of debit consolidation & once you are finish does it show on your?
Question : What do you think are the pro and cons of debit consolidation & once you are finish does it show on your?
Credit report that you had to go through the company that you went through. I have a girl friend that has been in a program for 3 years. She was able to buy a house two years ago, and have more then half her debt paid off. Another way to ask this is, is there really a difference in seeing 30, 60, 90, or 120 days late or seeing that you are currently in credit counseling? I am thinking about going through one of these companies for about $ 7000.00 of debt, and I am not sure of the pros and cons of doing it, and I am not sure which is worse seeing that you are in credit counseling or you are months late payments. I also don’t know if after you are done with the credit counseling does it show that you once were in it. I have the house, and the car so as of right now I can’t think of anything else I need to be taking a loan out for any time soon.
debit consolidation loans
Best answer:
Answer by luvmypups
If you own the house, why don’t you take a line of credit out to pay off the $ 7k? But to answer your question, showing late by however many days is worse than going through a consolidation company. My husband had horrible credit before we met and we had him go through one of the companies (can’t remember the name) and the creditors took a settlement for the amount he owes. On his credit report, it shows something to the affect of “paid per negotiated”. It doesn’t say paid as agreed, like it would if you just paid it off, but it doesn’t necessarily go against you. I would recommend going through a good company, however, as there are many of these consolidation companies that really just end up making things worse.
Also, you could call the creditors yourself and negotiate with them telling them your situation. If they know you are about to go through a company to consolidate, they likely will drop your rates and help you straight on…..
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#2 written by sharon s 1 year ago
You have several options but would need more information to see what is the best solution to fit your needs. You do not indicate how much equity that you have in your house or how long you have had a mortgage. One option would be to refinance your home to recieve enough cash-out to pay off your other debt. Call a local Mortgage Broker or your local bank and they will gladly do this analysis for you for free and give you your options. A home equity line of credit or home equity loan may work as well. Another option would be to hook up with a Consumer Credit Counseling place and have them negotiate with your creditors. I personally would do this as a last resort, because if you would apply for additional credit in the next couple of years, the fact that you had to do this may be viewed negatively by your potential creditor as an indication of irresponsibitlity on your part of getting in over your head and make them wary of loaning you their money. The last option I can think of would be to call each creditor yourself and attempt to negotiate new payment plans on your own. You must be very careful to make certain that you can live up to any agreements that you may enter into. The 30, 60, 90 etc. days late on your credit report on any obligation significantly affects your credit score. I have worked as a mortgage lender for many years, and CCC has always been viewed AS IF the borrower was in Bankruptcy, not disqualifying them from a loan in most instances, but requiring them to be assigned a higher interest rate because they are considered a more risky borrower. If you can possibly pay off your troubled creditors by pulling equity from your home, their will no longer be any late payments and your credit score will go up. More than likely this will also lower your monthly outgoing payments and place you in much better financial shape (not to mention getting rid of the stress of it all). Good luck to you.
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#3 written by SARAH G 1 year ago
You will never get all those credit cards paid off the way you’re paying them now. It’s so much easier paying one payment and watching the balance decrease. I would think this would help your credit rather than hurt it. You have to be firm with yourself and cut up those old credit cards and close out the accounts so that you won’t get back in the same fix again. Being late paying your bills hurts your credit more than anything else. Check the interest rate carefully though before you sign anything. You might come out better just consolidating your bills to your lowest interest credit card and then paying it off. Always pay more than the minimum payment, or you’ll never get it paid off. Good luck with this.
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#4 written by yagurlbubblez 1 year ago
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#5 written by picalibur 1 year ago
Det consolidation, and debt counseling are two seperate things. If you borrow one ig loan and pay off many little loans, then thats Debt Consolidation. This does NOT hurt your credit. If you go through a credit company and they take oever your payments and you pay them. It is recorded as a BANKRUPTSY on your credit report. This is not a lie, THey won’t tell you this, but it is true.
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Most “debt consolidation” companies are a rip-off. First, you have to pay a large upfront fee to them (usually several thousand dollars) and then pay them a monthly “maintaince” fee. I’ve come across some of these companies that tell the consumer, 1) to stop making the minimum montly payments on their debt, 2) that they are working with the creditors and then find out that they didn’t do anything and the consumer gets sued. It is best to either 1) contact your creditors directly and try to work out a repayment option or 2) find an attorney who handles consumer litigation to negotiate with your creditors on your behalf. You can contact your local county bar association for a referral.