Debt consolidating finance people poor credit

(See An Internet search for “debt consolidation” yields many companies that advertise great success in what they call debt consolidation.

Most actually offer debt negotiation and settlement services, not loans.

Your unused credit and the age of your accounts will help your credit score.

If you’re balancing so many different payments that you have trouble keeping your due dates straight — or if your interest rates are hindering your ability to pay what you owe — consolidation can be a quick step towards simpler payments and lower interest rates.

Also understand how the consolidated and new debt will be reported to the credit bureaus.

Settled debt can be reported to the IRS, resulting in a tax liability on the amount forgiven.

A consolidation loan, like any loan, requires a loan application and not everyone will qualify.

If unpaid debts have left you with bad credit, debt consolidation can be more difficult and expensive than for other borrowers.

Here are steps that will enable you to consolidate debt anyway and improve your financial health. Knowing where your credit stands is a crucial first step because consolidation options depend on it.

Every consumer can get a free credit report once every twelve months from each of the three major credit reporting agencies (Equifax, Experian and Trans Union) by visiting the Annual Credit website.

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