What Are The Negative Remifications Of A Debt Consolidation Loan?
i want to consolidate my debt but am concerned with how negatively its affects are on my credit. can i pay on a consolidated debt at a significantly lower interest rate than now(im averaging +20%!)? if so, will that outweigh the side-effects?
Tags: Are, Negative, Remifications, The, What
December 16th, 2009 at 7:40 pm
It depends on how bad you are now.
Consolidating means creating a whole new loan for a longer period of time. This would hopefully lower your payments enough so you can get back on track, in this case it might SAVE your credit score.
A credit counselor will give you some tools and suggestions for reducing your payments, just keep an eye on what the % are, you want it to be lower than what you pay now.
However, debt consolidation can be nothing more than a way of putting off the evitable. It really does little to correct the problem. That’s why many people come back to debt negotiation as a way of getting out of their financial problems and starting fresh start.
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good luck!
December 16th, 2009 at 7:40 pm
it will still show as a bankruptcy on your credit.