How does debt consolidation affect your credit report and score? (see more info)?

(see more info) We have recently incurred some really big medical expenses (over 50K) that we didn't plan and had to put them on our credit cards. We have been and are still capable of making all of the monthly payments. However, some of these credit cards have 29% interest rates and I don't see how we will ever get them paid off.

We just bought a house and tried to refinance and the representative told us that while our credit history is excellent, but we are just too extended to get a traditional loan. We see debt consolidation adds all the time. I would like to hear from someone who has actually done it- how did it affect their credit report and score?

Also, what did the credit card companies report once you consolidated? Did they report charge-offs or what? Asked by newbie4273370 47 months ago Similar questions: debt consolidation affect credit report score info Business > Financial Planning.

Similar questions: debt consolidation affect credit report score info.

Be very careful First I am sorry to hear you had unexpected medical problems in your family. I hope it was resolved and everyone is ok now. Be very careful of debt consolidation companies.

Some of these are scams that hurt people when they need help most. Here is some of my advice. I hope it helps.

Call your creditors - The credit card companies and other lending companies work on a risk model - What is the risk that you will not pay them back. If you call them and explain that you want to pay them back but cannot, they are sometimes willing to negotiate with you and lower your payments, interest rate, late fees, etc to reduce the risk of loosing all of your payment to bankruptcy. Get professional advice - There are several professional groups that can help and give you direction.

A bankruptcy lawyer will have experience in the laws and options in your state. A credit counsellor can evaluate your debts and help you prioritize payment and set up payment plans. A debt consolidation company can negotiate with creditors for a fee and will consolidate your bills into a new loan with their company.

If they are legitimate, they will have an agreement with each creditor in writing, showing you what they will report on your credit report as a result of the consolidation. You are correct in your question, this part is very important. Verify Everyone's Advice - The Better Business Burea is a good place to research each of the professionals you see.

Finally and most importantly, get you and your family help with the emotional stress and fear that goes with debt like this. If you or your spouse works for a large company you may qualify for counseling with the company's employee assistance program. Good luck and be well.

Z Sources: debthelp.com;http://creditcards.lovetokn... .

That could be one answer Debt consolidation could work for you. Be very careful there are sharks in those waters. Read everything they give you very carefully.

You could see about a home equity line of credit and then use that to pay off the loans. You could also contact the credit cards and discuss the situation with them. You may be able to negotiate a payment schedule (There are debt counselors who specialize in this and they are paid by the Credit Card Companies).

Greenpath.Com is a non-profit the says on their website that they will help reduce interest rates, fees, and so on. Credit card companies want you to pay off your debt, and live comfortably enough to run up new debts.29% is a punitive rate used to punish people who overextend themselves because they are stupid. This is not you.

They should be interested in helping you resolve your problems. Disclaimer: I do not know Greenpath. Com nor have I worked with them.

I do not know enough about them to say if they are good or bad. They simply fit my search parameters in Google. Do your own homework and get help asap..

Balance Transfer I can't speak to consolidation from experiance just from what I understand about it. You should go to your bank and say I would like to consolidate some of my debt with these credit cards and see if they can give you a loan for the amounts at a lower interest rate. At this time you may also want to include a few other things such as a car payments if it is going to be higher than the rate they're giving you etc.Also as far as the credit cards use balance transfers to transfer the balance from one card to another.

Most companies offer something like 0 to 4% interest on balance transfers for 6 months. That will save you from the 29% interest. Infact if my cards were that high on interest I would consider getting rid of them or speak with the credit card company they may be willing to lower the interest rate.

You may also want to pick up a few of Dave Ramsey's books from the library, or listen to him on the radio. He has some pretty good advice for getting out of consumer based debt. Ddraig's Recommendations The Total Money Makeover: A Proven Plan for Financial Fitness Amazon List Price: $24.99 Used from: $13.00 Average Customer Rating: 4.5 out of 5 (based on 301 reviews) The Financial Peace Planner: A step-by step guide to restoring your family's financial health Amazon List Price: $16.00 Used from: $7.25 Average Customer Rating: 5.0 out of 5 (based on 23 reviews) .

1 I saw a story on the news the other morning for another option to bankruptcy, consumer credit counseling, or debt consolidation. The place was Freedomdebt. Com and they work for the consumer instead of the credit card companies.

Maybe that'd be an option for you. Check it out.

I saw a story on the news the other morning for another option to bankruptcy, consumer credit counseling, or debt consolidation. The place was Freedomdebt. Com and they work for the consumer instead of the credit card companies.

Maybe that'd be an option for you. Check it out.

2 In answer to your Question, from one who has done it in the past--your Credit Score goes into freefall. . .. This user has been banned from Askville.

2 In answer to your Question, from one who has done it in the past--your Credit Score goes into freefall. ..

In answer to your Question, from one who has done it in the past--your Credit Score goes into freefall. . ..

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What about the Debt consolidation cos. That help with credit card debt over $10K. Does this affect your credit rating?

I did not report credit card debt write off on my 2006 state taxes and just recieved info that I owe. It is past 3yrs?

How do I get a collection debt removed from credit report after 7 years from 1st date of delinquency.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.