Does consolidating credit card debt hurt your credit

Cons: You need to meet the lender’s eligibility requirements to qualify for a personal loan.If you’ve had financial difficulties in the past, you may not be eligible, or you may only qualify for an interest rate that’s comparable to the current rate on your credit cards.Otherwise, you can have a real mess on your hands and can ruin your credit in the process..You should receive a call within the next few minutes so you can get connected.A personal loan can be used to consolidate debt, and the funds from a debt-consolidation loan can be used to pay off your credit card balances.So instead of making multiple credit card payments each month, you make one payment for the personal loan.

This only happens in the first month of the program.If you work with a credit counselor, it’s important to research the organization before you get started.Check with your state attorney general’s office and consumer protection agency to ensure it’s reputable.Unfortunately, some people get into bigger trouble with debt after they consolidate. Because once the debt is consolidated, you’ll have zero balances on all of your credit cards.It can be really tempting to start going out and spending before you pay off the consolidated debt. Always finish paying off consolidated debt before you start charging again.

Leave a Reply