Tell Me Why Is Debt Consolidation Bad?
Posted on August 11, 2009 at 10:21 pm
Why is debt consolidation bad if it (delinquent account) reflects on your credit report anyway? Good point. I think the consumer should focus on getting rid of the debt and then repair the credit after. One problem at a time seems better than doing nothing at all.
Posted on August 11, 2009 at 10:32 pm
Speaking of debt consolidation and its effect on the credit score:
The consumer's credit report has 5 parts, debt consolidation mostly affects the Payment History part (35% ) and the Length of Credit part (15%).
-the longer your credit history is, the higher this portion of your FICO score will be.
-the FICO score will increase with diligent monthly payments (on time).
-missed payments, on the other hand, will have a negative effect on the Payment History.
Posted on August 19, 2009 at 12:39 am
Another reason as to why is debt consolidation bad is that you may be putting up your property--such as your car or your home--as collateral for the loan that you'll be applying for. Failure to take care of this loan may result in foreclosure or repossession. It is necessary that we have at least some of the basics such as our means of shelter or transportation. Sure some of us can do away with the latter, but at the end of the day, having the basics intact is more beneficial to us in the long run.
Posted on August 24, 2009 at 2:24 am
Why is debt consolidation bad if it can pay off your debts? i tried doing it in the past and was able to get a good deal with the zero percent interest card. fortunately i was able to pay everything off on time. I think it's beneficial to a certain degree. So i suggest you do it.
Posted on August 24, 2009 at 2:59 am
Good that it worked for you Mr Roarke, but personally I wouldn't encourage using a debt consolidation loan to pay off debt. I believe the disadvantages of that have been discussed previously. It does take a certain degree of discipline in order to be debt-free and I applaud you for exercising that degree of discipline.
Posted on September 2, 2009 at 12:57 am
Why is debt consolidation bad? Is it any bad at all?? I have consolidated my debt numberous times in the past, I have always been able to catch up on debts.
Posted on October 7, 2009 at 4:55 am
Why is debt consolidation bad? I don't think it's bad at all. I think it's a timely debt relief option.
Posted on October 7, 2009 at 4:56 am
Debt consolidation is not bad, I wonder why this is being asked..
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