Credit card consalidation

[Carloscda40]

All those commericals talking about consalidation and how after a yr they're credit is so good they're out of debt, taking trips etc.

Is that all fluff and doesn't that affect your credit rating?

Or it really doesn't matter since you're already in debt?

[unsungivy]

---

@Carloscda40 wrote:

All those commericals talking about consalidation and how after a yr they're credit is so good they're out of debt, taking trips etc.

Is that all fluff and doesn't that affect your credit rating?

Or it really doesn't matter since you're already in debt?

---

It does affect your rating. Firstly, that's definitely a new hard pull to get a consolidation loan.

But, your CCs would no longer show as maxed out, and that will HELP your rating.

Aside from that, consolidation really is only going to be more beneficial to someone who can't juggle like you'd need to to use 0% balance transfer offers on various cards etc. It's a streamlined approach that help people who get overwhelmed trying to keep track of things (which is likely why they're in that situation where they'd need it in the first place).

I have a friend I tried to help... got her set up with 0% cards, etc... but it was still too confusing to her (and her husband couldn't grasp the idea of not filling a 15k card immediately within 3 months), and when the year or so of 0% was up, she was in a worse hole. But having multiple large consolidation loans is apparently something she understands and can keep on top of 🙄

[JoeRockhead]

I might be wrong here but, if you're talking about the commercials promising to help by letting you in on a "big secret that the credit card companies don't want you to know about" then that's not debt consolidation... that's what they refer to as "debt relief"

"Debt relief" programs will absolutely wreck your credit.  Lots of posts here debunking this sham.

A true debt consolidation loan can be beneficial when used properly along with continued restraint in the use of ones credit cards.

One should not be  confused with the other,

[Kforce]

---

@JoeRockhead wrote:

I might be wrong here but, if you're talking about the commercials promising to help by letting you in on a "big secret that the credit card companies don't want you to know about" then that's not debt consolidation... that's what they refer to as "debt relief"

"Debt relief" programs will absolutely wreck your credit score.  Lots of posts here debunking this sham.

A true debt consolidation loan can be beneficial when used properly along with continued restraint in the use of ones credit cards.

One should not be  confused with the other,

---

^^^ This

[FlaDude]

Moving your credit card debt to lower interest loans can help both your score and your finances, assuming you have the financial discipline to not run the card balances back up. Unless your debt is relatively small, paying it all off in a year is probably not realistic. I had 75k in card debt. Using a combination of 3 lower interest rate (6-8%) loans and 0% BTs I got mine paid off in a bit over 4 years. 

[SouthJamaica]

---

@Carloscda40 wrote:

All those commericals talking about consalidation and how after a yr they're credit is so good they're out of debt, taking trips etc.

Is that all fluff and doesn't that affect your credit rating?

Or it really doesn't matter since you're already in debt?

---

I don't know what commercials you're talking about, but commercials are not there to be helpful to you, they're there to help the advertiser make money off of you.

[Carloscda40]

Couldn't think of the name when I made this post but National Debt Relief is what I was inquering about.

[FlaDude]

---

@Carloscda40 wrote:

Couldn't think of the name when I made this post but National Debt Relief is what I was inquering about.

---

So they don't make consolidation loans, they are the kind of company @JoeRockhead mentioned in his post. They tell you to stop making all payments, after you are way behind they negotiate reduced payoff amounts. Since this puts late payments, charge offs, etc. onto your credit report, it trashes you scores. These negatives will stay on your reports for 7 years. Even after that when your scores improve again, the lenders who you did not fully pay may refuse to extend credit or issue cards to you, some of them have long memories.

These debt relief companies also charge high fees and really don't do anything you couldn't do yourself. You can stop making payments for 6 months to a year and then negotiate lower payoffs on your own if you want to.

[markbeiser]

---

@Carloscda40 wrote:

Couldn't think of the name when I made this post but National Debt Relief is what I was inquering about.

---

Why pay someone else to wreck your credit when you can do it yourself for free?🤔

[markbeiser]

---

@unsungivy wrote:

---

I have a friend I tried to help... got her set up with 0% cards, etc... but it was still too confusing to her (and her husband couldn't grasp the idea of not filling a 15k card immediately within 3 months), and when the year or so of 0% was up, she was in a worse hole. But having multiple large consolidation loans is apparently something she understands and can keep on top of 🙄

---

Some people just should not have credit cards, and need them some Dave Ramsey.