Will Debt Consolidation Hurt My Credit?
A Credit Article Contributed by Annie Bauers
If I Get a Debt Consolidation Will It Hurt My Credit Score?
No, a debt consolidation can only help your credit. If you are so overwhelmed with bills and debt you can not meet your monthly obligations this will only hurt your credit. If you hurt your credit it will hurt the chances for you to purchase a home or a car in the future. If you get a debt consolidation it will enable to make your payments and alleviate your debt. By making arrangements with your lenders and making a payment to them each month on time you will only help your credit.
It is important for you to remember that any efforts you make to make your payments and pay your debts will only help your credit. If you have to do this by debt consolidation then so be it -- you are making an effort and that is the first step in the right direction.
If your credit is already damaged having a debt consolidation will only make the chances of you raising your score better
How long Will It Take to Do a Debt Consolidation?
After you consult a credit counselor and decide that debt consolidation is right for you, your credit counselor will go to work right away. What needs to be done before the consolidation can be completed is the credit counselor must contact all of your lenders.
When the credit counselor has contacted all of them and worked out an affordable plan for you all of your debt will be lumped together. Each credit agency works a little different for debt consolidation so how the debts are paid off in the beginning and who you ultimately owe may vary from one credit agency to the next. However, the debt will be consolidated and an affordable payment plan will be arranged for you. This can be done in a few weeks time, and you will be surprised to know that a debt consolidation can be arranged faster than you go into debt!
Can I Do a Debt Consolidation by Myself?
You could probably try but there are some important factors to consider. Even though you have to pay a credit counseling agency a fee to arrange a debt consolidation, they are experts at the process. many of your lenders are most likely ones that the credit agency speaks to everyday and they have a working relationship. The credit counselor knows what is expected and how to work the best deal for you. If you tried to do this by yourself it would not be as successful as if you had a credit counselor representing you.
Debt consolidation is a complicated process and it is best if you have professional guidance when you consolidate. The whole point of a debt consolidation is to negotiate an affordable payment that you and your lenders agree upon. The chances of finding a payment you can afford are much better if you do not attempt this by yourself.
