Consolidation

Hi Jonathan

Welcome to the forums.

As per your query, debt consolidation program gives you more breathing room in your monthly budget and it does not hurt your credit. Using the debt consolidation program to pay off the debt won't hurt your credit score, although it may be sometimes difficult to qualify for a new credit.

When you enroll in a debt consolidation program, your creditor gets paid and this program usually lasts for three of four years. It is shown in your credit report that you have enrolled in a debt consolidation program and remains until your accounts are paid in full. Such a comment usually does not harm you credit score. In fact, some creditors take your active participation in the program as a positive step. They view it as a positive sign and that you have taken responsibility to pay off your debt.

Some creditors see your score. They actually don't look at the comment. Your credit score is boosted up when they see you paying off a big chunk of debt on your own or with the help of a debt consolidation program.

Please be careful that you do not miss your payments and your credit report does not show that your payment is 30 or 60 days late. Those negative marks actually hurt your credit score for up to 7 years.

Through the debt consolidation program, you get a reduced rate of interest, get your monthly payments lowered, all the late fees are waived and harassment calls of the creditors are stopped.

http://www.debtconsolidationcare.com/benefits.html

Please be aware that your credit report is your ultimate responsibility and you have to take every step to keep it clean.

Please sign up in the home page for a free registration and enjoy the benefits and services exclusively designed for the members of this site.

http://www.debtconsolidationcare.com/

Please let us know if we can assist you further in the forums.

Regards
Roxette

I'd like to ask a question regarding your answer to this post. I always learn something new every time I'm here.
As you may remember, Roxette, I'm newly enrolled in a debt consolidation program and the particular program I am in, my payments go into a trust fund and when a creditor settles that money is paid to them. And I notice you saying 30, 60, etc. days late can stay on credit reports for years....so, I'm second guessing myself now. Is this approach maybe a bad idea? I don't know how other debt programs work, only the one I've chosen but do some pay the creditor by month instead of putting the funds into a trust and waiting for the creditor to accept a settlement and is one method better than another?

Thanks!

-Kate

Hi Kate

Welcome back. I appreciate your positive move of getting enrolled in a debt consolidation program. In this way, you will be able to notice that your debt will get erased within a reasonable period of time.

Now, not all the programs are same for everyone. As you said that in your particular program, your payments go into a trust fund, there are other programs in which the debt consolidation company pays a larger portion of a person's debt to the creditor and the remaining is to be paid in easy monthly payments.

The credit report of an individual shows that he is enrolled in a debt consolidation program and has taken this responsibility to pay off his debt. It gives a boost up in his credit score when he looks for additional credit. In other cases, when a person misses any monthly payments, it gets hindered when the credit report shows that he has missed payments and thus reduces the credit score.

There are different approaches of the debt consolidation progra. The purpose of it is still the same to wipe off the consumer's debt. If in your program, it is going to a trust fund; ultimately you are reducing your debt. The consultant who got in touch with you has offered the right program evaluating your position and will get clear from all your debts surely.

Please keep in touch. We look forward for your active participation in the forums.

Thanks
Roxette