 |
My credit card balances seem to be going nowhere every
month but my credit report says I have good credit. How does
this work?
Keeping your credit cards current is important but national
statistics tell us that it takes over one year for every thousand
dollars owed to pay creditors at a 20% Annual Percentage Rate
on debts over $5000. Sooner or later, your debt will overcome
your ability to pay your bills on time. Your credit ratings
may eventually deteriorate due to debt-to-income ratios. That
is, if you divide the amount you owe by the amount you make
each year, you will get a rough idea of where you are. If you
are over 50%, you are obviously in need of a debt consolidation.
How long does it take to pay off my credit card
debts and bills after debt consolidation?
Most people are able to get out of debt in 3 to 5 years after
the interest rates on their debts have been reduced under a
debt consolidation plan.
Will a debt consolidation program affect my credit
rating?
It may be that you have not missed payments but you still realize
that you will never be able to get out of debt by paying only
the minimum amount every month. In this case, you are in financial
danger but your credit rating may still be very good. Once you
have begun debt consolidation loan counseling’s debt consolidation
program, Your credit report will show a remark such as "under
debt management" or "managed by credit counseling".
Is your debt consolidation program expensive?
No. We charge a small management fee which is included in your
monthly payment.
Do I need a credit report to consolidate debts?
No. We work with the creditors you SAY you owe, however, a credit
report is always a good idea to have whether you are thinking
of consolidating your debts or not.
Why don’t credit card companies have their own
debt reduction programs for people like me?
They do, however, debt consolidation and debt counseling are
entirely different functions than what the credit card companies
do best. Credit card companies would prefer that people deal
with specialized debt consolidation firms who take on the substantial
burden of individual repayment agreements and terms as well
as all the attendant paperwork. For these reasons, the credit
card companies have special programs only for use by debt consolidators.
|
|
|
