Does consolidating debt hurt your credit

credit counseling doesn`t hurt your credit score but it does affect your ability to apply for more credit.Reason being is that while in the program it will show on your credit report you are in a dmp and until you complete it most lenders will not lend you money.Depending on your situation this may or may not be wise.First, it makes all your unsecured debt secured and attached to your house which isn't really a great situation but it is usually a cheaper bill.The best way to consolidate credit card debt under ,000 could be to get a zero-percent interest credit card and transfer balances from high-interest credit cards over to it.You also could look at a personal loan to pay off your balances.

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In most cases, however, debt consolidation will lead to long-term credit score gains, since it will decrease your odds of default and put you on more stable financial ground.However, one thing you can do to help alleviate some of the financial pressure is to consolidate your debt into one loan repayment plan.There are many benefits to debt consolidation, but there are also a few drawbacks.However once you complete the program that drops off your report as if you were never in the program.Debt settlement does not show up on your report that you are in a program.

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