How does consolidating your debt affect your credit score?
Is it a good idea?
I just sold my home, and over the next year, I’m going to work on fixing my credit. (no mortgage or rent-living with family) How do these type places really help you increase your credit score while paying off debt? How much do they cost, cause I know they’re not doing it for free.
You can consolidate your debt without going to one of the so-called “debt counselors”. Simply go to your bank or credit union and ask about a debt consolidation loan. It can save you a lot of money in interest and may lower your monthly outlay. It always looks good on your credit report when you take action to reduce your debt.
All they do is take one big check you write them, and pay off your creditors. When one debt is done, they take the money from that and apply it to debt #2, so it goes faster until it’s paid. Repeat until done.
But in the meantime, they take $25 out of each payment you send them. Apparently this works for people who get frustrated at paying bills.
I take all my bills, divide them into four, and have the bank send a check every friday to all of them. anything left saturday morning is mine to spend. i am never stuck for not having enough money to pay the bills because nothing is ever overdue. to pay off the credit card debt faster, send MORE money each week. — but the bank doing it saves me the dismal task of stuffing envelopes, keeping stamps and remembering to mail.
I don’t open up the mail unless i schedule a payment… keeps me from paying late fees. can’t pay the whole thing… divide it up, schedule it, and forget it.
oh yeah. pay yourself first. get an ING direct account and save 5% of your income. you’ll thank me!
good luck.