Credit Debt Consolidation – Consolidating Credit Card Debt – New Era Debt Solutions
If you are considering credit debt consolidation you may be wondering if your credit rating will be affected. If you are smart when consolidating credit card debt, and if you find a very experienced and professional company to help you, it can have a good effect on your credit rating.
Having a lot of credit card debt affects your credit rating in a negative way and consolidating credit card debt may be a solution for you. If you carry a balance on your cards that is over 25% of your credit limit, you are penalized on your credit rating even if you pay your payments on time. So credit debt consolidation would be favorable with regard to credit rating if you have high balances on your credit cards and you are unable to pay them down. Other reasons your credit rating would improve are:
- You can also consolidate car loans or personal loans and paying them off will improve your credit rating.
- If you consolidate your debt you need to stop using the credit cards. Get rid of them. You can harm yourself greatly if you don’t.
So, credit debt consolidation can be positive for you if you are disciplined, dedicated to the process and wish for your credit to be improved. Remember that when consolidating credit card debt your amount of debt remains the same, and you will not experience any debt reduction.