Learn About Debt Consolidation Services

Damage is really done to your credit score, as an answer to whether debt consolidation service

, does this damage or help your credit, but in the short run. Here I added the short run because the damage is temporary as in the long run debt consolidation service not only repairs but also improves your credit dramatically. The initial damage, done to the credit score by a debt relief program, is something feared by almost everyone. However, in the case when you are pushing yourself out of a negative debt related issue the worst type of action is no action, and it is immensely needed by people to realize that their fear will only land them in a much worse financial condition.

What if you rebuild your payments into a single monthly expense? Well, that will result in you becoming debt free and focusing in your financial priorities but only for a short period. Will this effort not improve your financial standing? It will, but it will also improve your chances of being the best applicant for even bigger lines of credit. Then tell me what is basically done in debt consolidation service? When you enroll in it, you get a slum sum amount of money to pay of your lenders simultaneously. What does it do to my credit score? It is lowered by the reported agencies due to the shortening of lines of credit in a short span of time.

So what is the advantage of debt consolidation service? Its advantage is that when you make regular on time monthly payments you get to recover your credit score, which got damaged by the initial blow. What if I stop paying the monthly payments for some months? Then, your credit score is going to decline anyway. So the damage done to your credit score by the initial blow of the debt consolidation service is nothing? Yes it is nothing as compared to the damage done by your lack of monthly payments. What if I stack up the monthly payments and pay them in a month? Well, not even you can provide yourself guarantee that you will be able to afford that.

Moving further, once your credit score has dealt with the negative initial blow, the debt consolidation service will actually help you rebuild your credit score and make you an attractive option for the creditors who are looking forward to opening new lines to consumer credit. When you are regularly paying your monthly payments to the consolidation agency on time, this shows up in a positive credit report which results in the form of positive credit activity. Later, after some months this positive credit activity will result in an improved credit score. At first, it will be helpful in repairing the initial damage done to your credit score but after time you will find your credit score being better than ever before.

If you need help with your debt a good place to start would be the Citizens Advice Bureau. They have experts ready to help you with your problem.

by: Andy McDonald

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