Posts Tagged ‘Credit Score’

Debt consolidation vs just paying credit card? What would you do if you were me?

Friday, December 25th, 2009

Which is the better route to take?

I have $21,000 in debt spread out between 6 credit cards. I don’t use my cards anymore and I can probably pay this off in 2 1/2 years if I make $1000/month payments.

I called a debt consolidation company and they are willing to take on my case. They said they can reduce my debt to $11,700 and reduce my monthly payment to $326/month for 3 years but it will temporily hurt my credit score because they will settle with the credit card companies.

My credit score is 704-740. I hate to see that happen but I’m kinda struggling.

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Posted in Debt Consolidation | 5 Comments »

Will negotiating credit card debt hurt my credit score?

Saturday, November 28th, 2009

I’ve been unemployed for a couple months, and the credit card payments are starting to hurt.

If I negotiate with the credit card company to reduced my debt or monthly payment, will this somehow hurt my credit score.

I plan on refinancing my mortgage when I get another job, and I don’t want my score to be hurt.

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Posted in Credit Card Debt | 8 Comments »

Debt Consolidation ? Pros and Cons?

Wednesday, September 9th, 2009

I have 5 C.C. that I ve been behind since nov 07. And they are all in collection plus my credit score is 314. I want to start fixing that now that I have a job. BUt I need to know if a debt consolidation will be more beneficial in lieu of settling with the agencies. The settlemetnts they offer me is just around 200 less than my entire balance, and they want me to pay upfront. My initial before I fell behind were under 5,600 now over 7000,
Plus what is a
-debt consolidation
-debt settlement ?

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Posted in Debt Consolidation | 3 Comments »

Debt consolidation will leave you with a huge debt ratio, and close all your credit cards?

Saturday, June 13th, 2009

When you consolidate debt, it shows all old debts as being paid, etc, but the one new debt ratio, which is the amount being owed to the consolidation company will be huge. QUESTION: Does It lower the credit score to have a huge debt ratio like this?
OTHER QUESTION: and you also want to have say, 3 credit cards, (3 of them is the number you want to have a good credit profile, right), then the debt consolidation companies close your credit cards or do they not? How does it work

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Posted in Debt Consolidation | 2 Comments »