What is the difference between debt consolidation and debt settlement?
Debt consolidation is obtaining one loan to pay off many other creditors. However, Debt settlement is when the debtor and creditor agree on a reduced balance that will be regarded as payment in full. Learn More.
How can I consolidate credit card debt on my own?
Doing debt consolidation on your own requires strict discipline, complex calculations, organization, and negotiation skills. Not only does it give you the mental satisfaction of clearing your debt, but it also gives you control over your expenses and removes third-party administrators (and their tall fees) from the equation. In the long run, saving you money. Learn about debt consolidation from our free Discovery Consultation. Let’s get started!
Does debt consolidation affect your credit score?
The two most common debt consolidation approaches are 1) through a Debt Consolidation Loan, and 2) with a Balance Transfer Card. Both of these require authorities to make hard inquiries on your credit, which impacts your credit score in the short term. The considerable dip in monthly payments also hurt it. But this short-term damage to the credit score can be repaired by staying up-to-date on the payments of your new loan. In the long term, as long as you reduce your overall debt and remain current on repayment, your credit score will improve.
How do I qualify for a debt consolidation loan?
FICO Score is the most commonly used metric to measure a borrower’s creditworthiness to qualify for a debt consolidation loan. A score of 670 is generally considered to be good. Other loan qualification parameters are job history, income, education, and payment history.
What is debt consolidation?
Debt consolidation is the act of taking a new loan to pay off other loans, liabilities, and consumer debts, in effect bringing (or “consolidating”) all unsecured liabilities under one roof. The larger debt usually comes with better pay-off terms, including low interests, low monthly installments, and more. Reset your debt with our program.
What is a debt consolidation loan?
A debt consolidation loan is a larger debt piece to pay off your other liabilities. This does not only make your payments more manageable but also comes with better payoff terms.