CREDIT NERD
Debt Consolidation:
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WHAT IS DEBT
CONSOLIDATION?
Debt Consolidation is simply
for those who either have the
money or is not yet in a serious
hole.
Your account does not have to
be passed due, closed, in
collections, or even charged off to
be qualified for Debt
Consolidation. Your account can
be in perfectly good standing.
A Debt Consolidation
Company basically combines all
your balances, lowers your
interest rate, and gives you one
low monthly payment. Debt
Consolidation doesn't reduce
your balance like Debt
Settlement. However you may
have interest, late fees, and
overdraft fees reduced or
eliminated.
SHOULD I JOIN A DEBT
CONSOLIDATION COMPANY?
Well that depends on how
much you owe, the statuses of
your accounts, how much you can
afford monthly, and what financial
goals you have for th future.
If you owe a fortune and you
know it will take forever to pay off
than your better off with Debt
Settlement which can reduce your
Debt. You'll get out of Debt allot
faster. Most people settle for
about 40% of their Debt. Which
means if you owe $1,000, you can
Settle for $400.
The status of your accounts are
very important. If all your accounts
are in good standing and you just
want one low monthly bill. This can
be good for you. Just remember
company fees will be involved. If
your in a ton of Debt this is a very
costly way out. It will cost you allot
every month and take a long time
to pay off. See more information
at Right.
Your financial situation and
goals is something you should
really think about before joining a
Dent Consolidation Company.
Compare with Debt Settlement
and decide which is better for you.
Any more Question on this topic.
Contact the Credit Nerd:
creditnerd@trueresearch.net
CONSOLIDATION?
Debt Consolidation is simply
for those who either have the
money or is not yet in a serious
hole.
Your account does not have to
be passed due, closed, in
collections, or even charged off to
be qualified for Debt
Consolidation. Your account can
be in perfectly good standing.
A Debt Consolidation
Company basically combines all
your balances, lowers your
interest rate, and gives you one
low monthly payment. Debt
Consolidation doesn't reduce
your balance like Debt
Settlement. However you may
have interest, late fees, and
overdraft fees reduced or
eliminated.
SHOULD I JOIN A DEBT
CONSOLIDATION COMPANY?
Well that depends on how
much you owe, the statuses of
your accounts, how much you can
afford monthly, and what financial
goals you have for th future.
If you owe a fortune and you
know it will take forever to pay off
than your better off with Debt
Settlement which can reduce your
Debt. You'll get out of Debt allot
faster. Most people settle for
about 40% of their Debt. Which
means if you owe $1,000, you can
Settle for $400.
The status of your accounts are
very important. If all your accounts
are in good standing and you just
want one low monthly bill. This can
be good for you. Just remember
company fees will be involved. If
your in a ton of Debt this is a very
costly way out. It will cost you allot
every month and take a long time
to pay off. See more information
at Right.
Your financial situation and
goals is something you should
really think about before joining a
Dent Consolidation Company.
Compare with Debt Settlement
and decide which is better for you.
Any more Question on this topic.
Contact the Credit Nerd:
creditnerd@trueresearch.net
When joining a Debt Consolidation Company they
will make sure they tell you that they aren't a Debt
Settlement Company and you will be paying off
your entire balance. This is true. Your entire
balance will be paid off and reflect so on your
credit report.
Everyone is looking to pay off their debts, but not
many people resort to Debt Consolidation. Why?
Well on the good side, if you were only able to
pay all the minimums on your credit cards and
other debts, now you have only one low monthly
bill with Debt Consolidation. All your accounts will
be marked paid and you will save on interest, late
fees, and overdraft charges. Remember, once
enrolled in a Debt Consolidation Program your
accounts cannot be used. This doesn't mean they
are closed. Once the program is over and you've
payed all your accounts off they will than be
available to you again.
Debt Consolidation Companies work with your
creditors to lower monthly interest, late fees, and
overdraft charges. If your account is still active
you won't have any negative reported to your
credit report. It will be paid monthly. Debt
Consolidation does not hurt your credit and
actually maintains and improves your score.
Any Federally backed loans probably won't be
accepted into a Debt Consolidation Program.
Some personal loans, Student Loans, Mortgage,
and Auto Loans etc.. Are examples.
Now on the bad side, if you owe a ton of money,
your accounts are in bad standing, you can't
afford much, and you know it will take you forever
to pay off than Debt Consolidation might not be a
good idea for you.
It will take you up to 6 years with a high monthly
payment. If you can afford a large monthly
payment there's better ways to use it towards
your debt.
Your already in a hole. Get out as fast and easy
as possible. If your credit report and score are
both shot because of your debt even Debt
Consolidation won't erase that bad mark.
If you decide to settle your debts it might cost you
half the amount of what you owe. Which means
you will either be out of debt in half the time as
Debt Consolidation or have a much lower monthly
price.
Do you have the money to maintain your monthly
payment is your Debt Consolidation Program?
What happens if you miss payments? What
happens if you want to get out of the program?
After successful completion of a Debt
Consolidation Program which rarely happens,
your accounts will reflect on your credit report
with a 0 balance. If you decide to close them they
will be marked paid. If you decide to use them
again, you can do that also. If you settle your
accounts they are marked with a 0 balance also,
but under remarks it listed at settled for less. This
does not affect your score, but may be viewed by
future lenders. During the process of Debt
Consolidation your credit score will probably
increase, surly if your accounts were still active.
will make sure they tell you that they aren't a Debt
Settlement Company and you will be paying off
your entire balance. This is true. Your entire
balance will be paid off and reflect so on your
credit report.
Everyone is looking to pay off their debts, but not
many people resort to Debt Consolidation. Why?
Well on the good side, if you were only able to
pay all the minimums on your credit cards and
other debts, now you have only one low monthly
bill with Debt Consolidation. All your accounts will
be marked paid and you will save on interest, late
fees, and overdraft charges. Remember, once
enrolled in a Debt Consolidation Program your
accounts cannot be used. This doesn't mean they
are closed. Once the program is over and you've
payed all your accounts off they will than be
available to you again.
Debt Consolidation Companies work with your
creditors to lower monthly interest, late fees, and
overdraft charges. If your account is still active
you won't have any negative reported to your
credit report. It will be paid monthly. Debt
Consolidation does not hurt your credit and
actually maintains and improves your score.
Any Federally backed loans probably won't be
accepted into a Debt Consolidation Program.
Some personal loans, Student Loans, Mortgage,
and Auto Loans etc.. Are examples.
Now on the bad side, if you owe a ton of money,
your accounts are in bad standing, you can't
afford much, and you know it will take you forever
to pay off than Debt Consolidation might not be a
good idea for you.
It will take you up to 6 years with a high monthly
payment. If you can afford a large monthly
payment there's better ways to use it towards
your debt.
Your already in a hole. Get out as fast and easy
as possible. If your credit report and score are
both shot because of your debt even Debt
Consolidation won't erase that bad mark.
If you decide to settle your debts it might cost you
half the amount of what you owe. Which means
you will either be out of debt in half the time as
Debt Consolidation or have a much lower monthly
price.
Do you have the money to maintain your monthly
payment is your Debt Consolidation Program?
What happens if you miss payments? What
happens if you want to get out of the program?
After successful completion of a Debt
Consolidation Program which rarely happens,
your accounts will reflect on your credit report
with a 0 balance. If you decide to close them they
will be marked paid. If you decide to use them
again, you can do that also. If you settle your
accounts they are marked with a 0 balance also,
but under remarks it listed at settled for less. This
does not affect your score, but may be viewed by
future lenders. During the process of Debt
Consolidation your credit score will probably
increase, surly if your accounts were still active.