Debt Consolidation

[azfitz11]

Considering debt consolidation, but worried abouot the hit to my credit score. Can anyone tell me how it reflects on your credit? I am really strubbling with the idea of screwing over my creditors, espaeciall NFCU and PENFED. I really need whatever advice or experience you can offer. I don't trust the lender for the truth. She is telling me my scores will not go down and will go up after 15 months.

[marty56]

If you are taking about a Debt Managment Program (DMP), they can reduce your interest but you pay back the full amount you owe over a period of up to 5 years.  They will close all your CC that are in the program.  A DMP will have no lasting affect on your FICO after you are PIF.  I used a DMP program and I was able to get the credit I needed after finishing the program, even with CCCs that I had in the program.

DMP program is a good way to get out of CC debt but you have to be able to afford the payments.

If the program is a debt consolidation program that lowers what you owe, it will destroy your credit for up to 7 years.  I would avoid at all costs.

[gsxraddict]

I think the best way to consolidate debt is to do balance transfers to one card if possible and make huge monthly payments.

Personal loans to anything like that to consolidate will require you close down revolving credit accounts which will hurt your score.

How much debt are you in and what's your income.

[marty56]

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@gsxraddict wrote:

I think the best way to consolidate debt is to do balance transfers to one card if possible and make huge monthly payments.

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IMHO that would be a bad idea.  If you can afford to make large payments, just pay the CCs directly.  BT to open you up to AA and many members in this forum, me included, while having the best intentions had problems with BT in the past.

Debt Snowball is the best way to get out of CC debt even at the expense of paying extra interest.  It really works.