Debt Consolidation

Is this a good way to go when you just can't pay off the cards in time? Does this reflect on your credit?

[Jeanie]

MrTrag, maybe this article will be of help for you to understand Debt Consolidation..

Good Luck..

thanks for this!

it does reflect on your credit. don't believe debt consolidation companies, often they make the situation worse. try and seek free financial advice!

I didn't go this route. I sought credit counseling, which created just one payment for me. Of the 5 credit cards that I enrolled in the program, only one reported on my credit that I was involved with a credit counseling program... and it was a local credit union.

It took me ~4 years to become credit card debt free, but it was well worth the effort.

Jennifer

Debt consolidation loan can be handy when you have multiple loans with different interest rates on them. so consolidation is quite useful that ways. you can go for consolidation and the consolidation company deals with all your lenders. and you get more time to payoff your debts and a constant interest rates.
vix

[Jeanie]

Thanks finvix!

~Jeanie

In a lot of cases, if you call your creditors yourself and ask them for a lower APR, they give it to you.

You will be surprised to see how often it happens. All you have to do is call and try out your luck.

Now considering this is one of the biggest benefits that debt consolidation will get you, before trying consolidation, make sure you call up yourself to see if the creditors negotiate the rate and give you a lower APR.

If they do, then I suggest you skip debt consolidation.