PostHeaderIcon what are the negative remifications of a debt consolidation loan?

i want to consolidate my debt but am concerned with how negatively its affects are on my credit. can i pay on a consolidated debt at a significantly lower interest rate than now(im averaging +20%!)? if so, will that outweigh the side-effects?

2 Responses to “what are the negative remifications of a debt consolidation loan?”

  • rufi says:

    it will still show as a bankruptcy on your credit.

  • a58392 says:

    It depends on how bad you are now.
    Consolidating means creating a whole new loan for a longer period of time. This would hopefully lower your payments enough so you can get back on track, in this case it might SAVE your credit score.
    A credit counselor will give you some tools and suggestions for reducing your payments, just keep an eye on what the % are, you want it to be lower than what you pay now.
    However, debt consolidation can be nothing more than a way of putting off the evitable. It really does little to correct the problem. That’s why many people come back to debt negotiation as a way of getting out of their financial problems and starting fresh start.
    More here:
    also plenty more to read here
    good luck!

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