How To Consolidate Credit Card Debt Without Hurting Your Credit?

How do I consolidate credit card debt without hurting my credit?

One of the most common ways of consolidating your credit card debt is when you qualify for a loan that has a larger credit limit with a lower interest rate.

What happens next?

You take your higher interest rate credit cards or loans, with a smaller amount, and then you transfer them to your new qualified loan or credit card that has a larger amount with a smaller interest rate.

Typically what happens is your payment then becomes less and then you actually have these other credit cards now with a zero balance.

When you consolidate your loans that could result in a lower monthly payment and it may take a slight dip on your credit score but that should be easy to get back up.

The danger lies in when you have these open small balanced credit cards or loans with a high-interest rate.

Now what could happen is if you’re not changing your habits those credit cards or loans now could be used and then you can over extend yourself.

This commonly happens and that could ultimately lead to financial hardship.

If you are in financial hardship and would like more information about debt relief or debt settlement, visit us on our website at[1]

How Debt Relief and Debt Settlement Work?

Debt Relief and Debt Settlement is a negotiated agreement by which a creditor accepts less than the total amount owed to legally satisfy a debt.

Settlement programs typically last 24-48 months and are highly dependent on factors such as delinquency, creditor policies, the number of accounts, and the total dollar amount of the debt.

Debt settlement services have existed in some form since the advent of debt itself.

The modern industry has seen significant growth in the 21st century, largely due to the easing of lending requirements by financial institutions.

In addition, today’s borrowers are taking on significantly more debt than their parents had at a similar stage in life and are subsequently paying off that debt at a slower rate.

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