Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

The Credit Score (also known as your MyFico score) is calculated with the following breakdown:

* 35% - Payment History

* 30% - Credit to Debt Ratio

* 15% - Credit History

* 10% - New Credit

* 10% - Credit Types in Use

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Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

No. Bankruptcy is in all your credit reports for 10 years.

Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

I don%26#039;t think it hurts your credit as bad as bankruptucy but it does go on your credit as a thrid party paying your debit (I know that cuz I know someone who works at debit consolidation) and that don%26#039;t look good either

Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

Debt consolodation only affects your credit because it affects your debt to income ratio...so no it does not hurt your credit any where near as much as bankrupcy...

Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

No it does not. Bankruptcy affects your credit majorily and consolidationg in a way helps.

Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

Yeah, pretty much if its done formally. If you consolidate by taking out a loan on your CC balances, not at all.

It depends basically on whether everybody has been paid off or not.

Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

Nothing hurts your credit as worse as filing for bankruptcy. By doing debt consolidation you%26#039;re trying to take control of your financial situation before it goes overboard. The first step is to cut up the credit cards so you don%26#039;t use it anymore and more likely to pay it off. Talk to credit management companies, but go for the non-profit people first or government run credit management. But first try and pay it off on your own and if don%26#039;t work then go with the non-profit or government run credit management. Bankruptcy should be your last resort.

Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

No, debt consolidation is completely different. You agree to have your debt reorganized into one place and can often get much better payment terms than on a credit card or multiple cards. Debt consolidation does not relieve you of the debt. You still owe the same amount of money, but it will be easier to pay off.

In bankruptcy you tell the company(s) that lent you the money that you will not pay it back. Naturally this will make anyone reluctant to lend you money in the future. Your credit rating is basically a measure of how much confidence the lending companies have that you will pay them back the money you want to borrow. Typically this score will be around 500 and really good borrowers can get a score over 700. When you declare bankruptcy I assume your credit score goes to 0.

Also keep in mind that the government passed a much tougher version of the bankruptcy laws a couple years ago. Bankruptcy should be considered a last resort. Really, only if you have no other choice.

Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

The answer is no. Debt consolidation can actually increase your credit score. I think what you mean is a debt management with a non profit company helping you pay your bills. You%26#039;re better off in the long run to avoid bankruptcy at all costs. Go to the national foundation for consumer credit counseling for more help. As long as your willing to pay something you%26#039;ll be aright especially if it is unsecured debt.

Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

The most popular solutions to the problem of heavy debt burden is to get a debt settlement or file for bankruptcy. Among these two debt settlement is preferred as it has a relatively less impact on credit report. In this article we assess the benefits and drawbacks of debt settlement.

Debt settlement is a process in which an organization will go to your lenders and negotiate with them regarding your debt. The purpose of the whole exercise is to reduce your debt burden. If a settlement company is good it can get your debt reduced by as much as 50%. This is what a creditor needs and this is the most visible benefit of debt settlement. The amount of the debt is reduced, the repayment plan is made easy and often the monthly installments are spread over a long period. This makes life a lot more easier for the borrower.

However, debt settlement is not without its drawbacks. There are two things to worry about. First, is the cost of debt settlement. Debt settlement companies will charge huge amounts for their services. The usual range is between 10-15% of the debt amount. Paying this much amount upfront can turn your financial situation from bad to worse.

The second problem caused by debt settlement is the damage done to your credit report. The very fact that you are going for a debt settlement will show negatively on your report. But, it is still better than filing for bankruptcy, which will make a bigger dent in your financial credibility. Read more from: http://www.credit-card-gallery.com/artic...

Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

Lots of people think that once they閳ユ獫e filed for bankruptcy they will be unable to ever get a loan again, and ultimately they are unable to do anything financial ever again. This isn閳ユ獩 always true, there are%26lt;!--always ways to improve your financial standing, and there are also ways to repair your damaged credit rating.

http://badcredits.awardspace.com/Bankrup...

In fact one of the best ways to improve your credit rating is to refinance your home mortgage, this--%26gt;will help to improve your credit history in a number of different ways.

Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

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Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?

Hey Guys

Debt is a horrible thing, we all try not to get into it but sometimes lifes circumstances and choices wind us up in a pile of debt. Personally, there is a wealth of knowledge available, and with a little thinking and planning, you can systematically get rid of all your debt. I used to be in big debt, a few hundred thousand, however from about the past year or so I have been living debt free. Im not promoting anything here, I just want everyone to know that its possible. I write about my experiences in regards to Debt Consolidation, Car Loans, Credit Cards, Student Loans on my blog listed below so stop by if you get a chance and leave some comments.

http://credit-and-loans.blogspot.com/