subject: Will Debt Consolidation Ruin My Credit? No, It Won't [print this page] Will Debt Consolidation Ruin My Credit? No, It Won't
A lifestyle filled with financial struggles and constant worrying due to an overwhelming debt load is certainly not something that many individuals would opt for.
But the unfortunate truth is that the majority of consumers that find themselves dealing with similar situations simply don't know how to find the light at the end of the tunnel.
Aurora Lillo Editor of the "Best Debt Consolidation Services" website -- http://www.BestDebtConsolidationServices.net -- pointed out;
"...While many people are advised that debt consolidation may be their best method for dealing with their indebtedness, too many misconceptions are very common. One of the most troubling mistakes that consumers make is opting to continue struggling rather than seek professional guidance because of concerns of a possible negative impact to their credit..."
Although an individual with an incredibly high amount of money owed to creditors may be current on their required minimum payments, most consumers do not realize that their credit score has probably already suffered significant damage. A major component in the calculation of a financial rating is the amount of existing debt as a ratio of how much credit is available. What few consumers understand is that their beacon score will not improve until they take the necessary measures to rid themselves of the excessive monetary obligations.
Debt consolidation programs are designed to take all of the high interest rates and combine them into a single loan with much lower payments as a result of lower finance charges. The drastically reduced monthly payments will allow a consumer to allocate a larger portion of their budget to permanently dealing with their indebtedness by paying off the balances. An individual that allows themselves to continue to struggle with their budgeting is going to be at a greater risk of missing payments or becoming seriously delinquent on their accounts. These actions will obviously seriously harm their financial standing for years to come.
"...When all of the high interest balances are combined into one simple account, the credit score of an individual will often begin to improve as the amount of the total obligations are reduced. Debt consolidation methods do not require a consumer to allow their accounts to become seriously delinquent, nor will they cause a negative blemish found by all future lenders for the next seven to ten years like bankruptcy filings. Only a permanent solution is going to be acceptable for most consumers, and debt consolidation could quite possibly be the best way to accomplish long term financial and personal goals..." added A. Lillo.
Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationServices.net
