Is consolidating bad for your credit

You’re in deep with credit cards, student loan debt and car loans.Minimum monthly payments aren’t doing the trick to help nix your debt.Something has to change, and you’re considering debt consolidation because of the allure of one easy payment and the promise of lower interest rates.The truth is debt consolidation loans and debt settlement companies don’t help you slay mammoth amounts of debt.In fact, you end up paying more and staying in debt longer because of so-called consolidation.Get the facts before you consolidate or work with a settlement company.Here are the top things you need to know before you consolidate your debt: But here’s the deal: debt consolidation promises one thing but delivers another.That’s why dishonest companies that promote too-good-to-be-true debt relief programs continue to rank as the top consumer complaint received by the Federal Trade Commission.

Even if you qualify for a loan with low interest, there’s no guarantee the rate will stay low.But let’s be honest: Your interest rate isn’t the main problem. This specifically applies to consolidating debt through credit card balance transfers.The enticingly low interest rate is usually an introductory promotion and applies for a certain period of time only. In almost every case, you’ll have lower payments because the term of your loan is prolonged. Your goal should be to get out of debt as fast as you can!You are only restructuring your debt, not eliminating it.

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