FREE CREDIT REPORT WHEN YOU SIGN UP! Over 70 million Americans suffer from common problems negatively affecting their credit, such as: late payments charge offs bankruptcies incorrect/outdated personal information   Debt Consolidation and the Impact on Your Credit Score If you’ve just decided that debt consolidation will be the answer to all your credit problems, take a look at credit scores and how they work. You may find that debt consolidation isn’t the best answer after all. Start by understanding your credit report. This report is compiled and maintained by three major credit reporting companies in the United States – Experian, Equifax and TransUnion. None are government companies. The information is provided to these companies by those you do business with. When you fail to make payments on time as promised, the company has the right to notify the credit reporting companies. One thing that many people don’t realize is that payments you make on time are also reported. Another very common myth about credit reports is the reason that some people hop on the consolidation bandwagon – that a bad credit event is eliminated from your credit report when you pay off that debt. Reports – positive or negative – may remain a part of your credit report for seven to ten years. Here’s what that means. If you fail to make payments on a particular credit card for several months, that will likely be noted on your credit report. (Note that companies can mark every single late payment on your credit report, but not all make that notation for an occasional event.) That notation remains part of your credit report for seven years. If you make the next months’ payments on time, that late payment notice will still be on your report for seven years. If you take out a debt consolidation loan and pay off that credit card debt altogether, the late payment notation will still remain a part of your credit report for seven years. If your goal is to improve your credit, taking out that consolidation loan isn’t the answer. If you are simply having trouble getting all your payments made on time, or if you’re tired of paying those high credit card rates, taking out a debt consolidation loan could very well be a good plan.

CLEAN YOUR CREDIT NOW! Debt Consolidation Apply Now Successful Debt Consolidation Includes Getting Control of Spending When it’s time for debt consolidation, one of the most important things to look at is the reason for the decision. If you’ve over extended credit cards and are looking to lower monthly payments, debt consolidation is a good way out of the situation. But it should be a long-term remedy, not a way to increase immediate spending. With that in mind, you should probably start by creating a reasonable budget. List all your monthly income and expenses. Remember to list those items that aren’t due monthly such as insurance and property taxes. Your budget will never be written in stone, but you should make every effort to stick to the guidelines that you set up for yourself. Make allowances for savings, emergencies (doctor’s visits, days off work, etc.) and for entertainment. After you’ve created your budget, take a look at the bottom line. You may be surprised at how much difference there is between your income and expenses. To get a better idea of where your money is going, make yourself list each expenditure you make for an entire month. You may be amazed at how much you spend on junk food, lunches or other expenses that you really don’t budget for. Putting it in black and white can help you better understand your finances, making your debt consolidation worth more in the long run. One way to really take control of credit card expenditures is to consider purchases carefully. You can use the old “think about it overnight” trick to help decide whether you really want that particular item. Another good method is to value the purchase against your hourly wage. If you make $10 an hour and a particular pair of jeans costs $40, ask yourself if it’s worth more than four hours of work to own those jeans. Your debt consolidation could very well have increased your monthly cash flow, but don’t head right back out to start amassing credit card debt. If you’re making monthly payments on a loan for that consolidated debt, you may very well have used up your only opportunity to achieve such a loan. If you choose to incur credit card debt again, you may have no choice but to pay the high interest rates. Debt consolidation can be a good answer to many situations, but a successful debt consolidation is one that offers a long-term benefit. Use a Debt Counseling Service for Debt Consolidation If you’re in a debt-ridden situation and paying high interest rates on several credit cards, you may be thinking that you’re all alone on a sinking ship. It’s actually pretty easy to get help. A debt counseling service could be the answer to getting a grip on your debt, including finding a debt consolidation loan. But if you were already in financial trouble, why would you hire a debt counselor and add another debt to your existing bills? There are lots of non-profit debt counseling companies that will work with you free or at a greatly reduced rate. There are plenty of other services a debt counselor can offer as well. Maybe you’ve fallen behind on your credit card payment and you’ve got creditors hounding you for money. Phone calls, late notices and even visits from those companies can disrupt your life, adding stress to the situation that already seems completely out of control. A debt counseling service can often act as intermediary between you and the company, working to eliminate the phone calls and contacts. Sometimes, these counselors can negotiate new payment arrangements which might eliminate your need for debt consolidation altogether. But if debt consolidation is still the best option, these counseling services can often steer you toward companies that offer reasonable rates for people who are having credit problems. Even if you aren’t in financial trouble, a counselor may be able to guide you in the debt consolidation process. This person can take an objective look at your finances and help you decide which debts should be consolidated. So where do you find debt counselors or financial advisors? There are literally thousands of companies offering the service, but you need to take time to do a little research before you start handing out your personal information. Ask about fees for the service. Find out what the total amount is that you’ll be paying and get it in writing. If you’re applying for the service online, make sure that the site has a privacy policy and don’t give your personal information or pay any fees until you’re certain that the company actually exists and that they can provide the service they promise. Debt or credit counselors, or financial advisors can often be the next logical step before you tackle a full-scale debt consolidation. Allt om lån

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