Will consolidating my debt with a consolidation company worsen my credit or will it help?

I am in debt with all my credit cards, i was thinking about consolidating my debt but I heard that was going to mess up my credit even more. Is that true?

Will consolidating my debt with a consolidation company worsen my credit or will it help?
Dont do it!! It is just as bad as bankruptcy!! Try the snowball effect it really works and you will pay off your bills before you know it.


First write down all your debts. List them from smallest to largest. Pay what you have been paying on all your bills except the smallest. Add as much as possible to that bill and pay that amount every month. When you pay that bill off; add the amount that your were paying to the next smallest amount. You will pay the amount that you were paying on the last bill plus what you were already paying on the next and continue to pay this amount until it is paid off. Then you add that amount to the next smallest bill. You will continue doing this until all your bills are paid off. The best part about it is when you get to the big bills you are paying such a large amount that it gets paid off super fast!!!


You should also start saving as soon as possible so that if you get an unexpected repair or something you are not skipping payments on the bills. Start a seperate account and add as much as you can into it each paycheck. Count it as a bill not an extra. Find small ways to save money so that you can get back to where you want to be financially. Buy generic brands they are usually just as good as the name brands without the cost. Use less clothes soap and dish soap. Little things will add up!


You should also know that every time your credit is checked it hurts your score so just leave it alone for awhile.


Good luck! Oh and remember STOP USING THE CREDIT CARDS!!!
Reply:Why give yourself one INSURMOUNTABLE bill....when at least right now you can attack them in pieces...





If you are serious.....list your bills smallest BALANCE to largest....pay minimums on all....and every extra penny on that first small balance...look under the couch!





Maybe with that first victory under your belt you will stay motivated to attack the next bill....





Lose the cable/internet....lower cell phone.....deliver pizzas....I wonder where you%26#039;ll be by Christmas time.....I bet tired, but a lot happier
Reply:as long as all your payments are current it shouldn%26#039;t hurt you. all your doing is getting a loan to pay off all your credit debt so you will have one payment. it would be better to pay them then go into default. just be careful of the interest this company may charge you.
Reply:It depends on your definition of debt consolidation.





If it%26#039;s paying a third party negotiate payoff/settlement, yes it will trash your credit. Typcially the hold all you payments till the accounts are 3 months past due, then offer lowball settlement under threat that you will file bankruptcy. Some credit card companies refuse to pay and just sue you.





If you are taking out a new loan to pay off all your credit cards, it is still a bad idea to shift debt to a new loan. People tend to run the credit cards back up. Then you have the credit cards and that big loan to pay.





A better way is to pay off your credit cards one at a time. Make a strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, premium cable and internet, etc. Take every penny you can squeeze out of that budget and put it on the HIGHEST interest rate card, while making minimum payments on the rest. When the highest interest rate card is paid off move to the next one till they are all paid in full.





Concentrating on the highest interest rate first means you will pay less interest and more will go on the debt.





You should also look for ways to bring in more cash -- garage sale, collect alum cans, get a second job. Throw every penny at the debt.





If you work at it, you can pay off your credit card debt within 2 years. Not only will you pay it off and save that interest, but you%26#039;ll have a good consistent on time payment history which will improve your score.
Reply:worsen.


visit dave ramsey.com for common sense to problems coming ur way .


learn from others bigger mistakes.
Reply:Not always. Using a consolidation debt to pay off credit cards can be beneficial. However, here is some food for thought. When you pay off the credit cards do not put yourself back in the same position by using them again. Keep the one with the best rate and put it away in a safe, shoebox up in the closet or somewhere where you have to think about it before use, I use the freezer, but that%26#039;s just me. Close all the store cards, and cut up he others but don%26#039;t close them, this increase your credit scores by reduces your %26quot;utilization%26quot; aka %26quot;balance to high credit ratio%26quot;. The new loan will cause a slight and temporary decrease in your credit score but it rebound within 90days or so. When it does, and you get %26quot;great offers%26quot; in the mail.....well just say no!
Reply:Hi,


I used %26quot;Credit Solution%26quot; to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It%26#039;s legitimate.I came across this company on NBC News Special Edition.Check it out here:


http://www.x.se/a5nf
Reply:Well I will suggest just file bankruptcy rather cause those companies dont work. Cause they will want to settle payments after you are 90 days later with your creditor. Few creditor dont even work with them.
Reply:Consolidationg your debt can be a better solution than bankrupcty.Depending on your situation and how much credit debt you have. One of the issues with debt consolidation is that there will be late payments sometime reported during this process which will lower your credit score dramaticlly. But of course BK will do the same thing. If you have more monthly obligations than you have money coming in every month, yoiu might consider debt consolidation.


Here is a good company which won the JD power %26amp; Assosciates customer service award.


www.creditscorequick.com/loans select Credit Solutions.
Reply:debt counseling is almost as bad on your credit as bankruptcy