Consolidating debt affects credit Dirty helen s sex

It may be to the benefit of your credit score to leave open your credit card accounts, particularly the oldest ones.Another way your credit could suffer from debt consolidation is if you work with an agency to implement a debt management plan (DMP).This probably seems counter-intuitive, but charging a handful of monthly transactions, then paying them off in full at the end of each billing cycle, shows that you’re able to handle your credit.A simple way to do this is to use a credit card to cover some regular monthly expenses that you’re planning on paying in full anyway — like gas, groceries or your cell phone bill.To get the most out of a balance transfer, pay off your balance before the promotional period ends. Credit card companies also usually charge a one-time transfer fee of up to 5 percent of the balance, so be sure to read the fine print, do the math and have a payoff plan in place before pulling the trigger.Compare Balance Transfer Cards A personal loan is another common way to consolidate.

Let’s pretend your credit card balances look something like this: Plugging these numbers into a debt payoff calculator reveals that you’ll pay a total of ,644 and get out of debt in 11 months.These plans often require closing your credit card accounts, and if the debt management or credit counseling agency negotiates lower settlements on your behalf, those accounts may be reported to the credit bureaus as “not paid as agreed.” That can hurt your credit score.However, these plans are for people who are already struggling with severe debt, so paying off your debt this way is likely to have a positive long-term effect on your credit that outweighs any short-term damage.If you use a rewards card, you can also snag some points in the process.Paying the balance in full means you won’t accrue interest on those purchases, so you can avoid the debt problems that led you to consolidate in the first place.

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For many people battling debt like credit card bills, medical bills, and student loans, debt consolidation is an effective way to reduce monthly payments, lower interest costs and ultimately get debt-free faster.

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