How Do I Repair My Credit By Making Monthly Payments ?!!!
I want to repair my credit. I was told I can combine all my bills and send it somewhere and they would allow me to make one monthly payment. I'd like a place that non-profit. Can anyone help?
The Answer : Lets start by clarifying things...Debt consolidation is when you take out a loan to pay off all your other debts, then you pay one loan off at a reduced amount.Debt SETTLEMENT is when you hire a company to contact your creditors and negotiate a reduced balance, lower interest or late fees.
You then pay this company to act as a "trustee" and pay off your creditors. Debt SETTLEMENT kills your credit scores. But getting a consolidation loan does not! You will still have the same debt, but now it's only to one person.Debt consolidation is a great way to fix your money problems...but it has great dangers also.
Over the past few years the banks have been enticing people to take out these loans. People get them and pay off their credit cards....then turn around and run up those cards all over again. Now they are in twice the amount of debt, and have no way out.The end up filing for bankruptcy.
This is the main reason the bankruptcy filings have skyrocketed over the past 5 years. So if you plan to go this route, you MUST get a grip on your credit spending.
No comments:
Post a Comment