Does A Credit Card Debt Consolidation Company Affect Credit Rating?
If you are in credit card over your head consider debt consolidation is a good idea. It will give you one single monthly payment and a chance to get your budget back on track and maybe even save some money in the process. Debt consolidation stops collection efforts and stops interest from accruing on your accounts. Debt consolidation will have an effect on your credit rating whether it is good or bad depends on how the consolidation is handled. Hector Milla Editor of the “Credit Card Debt Free” website — http://www.CreditCardDebtFree.org — pointed out; “…Because debt consolidation is in essence is getting you new credit to pay off old. You use the money from your new line of credit to pay off your credit cards or other debts you have. When these are all paid off you only have one single payment (on the new credit line) to pay monthly…” If your accounts are overdue when you go into debt consolidation paying off those accounts through it can improve your credit score. Make sure to hand
