Consolidating debt hurt your credit Free mature woman cam chat
It’s a six in one hand, and half a dozen in the other answer, because you may feel that by consolidating the debt together it’s a benefit because you’re just making one monthly payment but the fact is you are still carrying the debt load.
So technically, your credit may not be negatively affected after you consolidate your debt, but it’s also not improving.
So if an unforeseen circumstance happens, you will be more suited to handle it.* Put the average interest rate that you are paying or that you were paying on your accounts.Simply put you get a new loan, which has better terms and a lower interest rate, to pay off your other debts.If you’re currently thinking about consolidating your debts this option is probably high on your list of viable choices.So while you are in a consolidation for the 5 years, your credit is pretty much on hold because of other factors such as your debt to income ratio (DTI), utilization ratio and other factors that creditors consider.If you did a debt relief program not only are you saving money, but you are also saving time by being out of debt within 3-years or less.
The real solution to pay off your debt is to lower your overall debt.