Does consolidating credit card debt hurt your credit

Unfortunately, some people get into bigger trouble with debt after they consolidate. Because once the debt is consolidated, you’ll have zero balances on all of your credit cards.

It can be really tempting to start going out and spending before you pay off the consolidated debt. Always finish paying off consolidated debt before you start charging again.

Fact: Even with an assisted debt management program through credit counseling, your credit score may improve.

Debt consolidation usually only hurts your credit score when you don’t do it right or don’t use the right solution – So how and when does that happen?

That one month of “missed” payments is usually a drop in the bucket compared to all the other payments that might have been late or missed while you were struggling.

Of course, if you have really excellent credit, then a few missed payments in the first month of your debt management program CAN make a difference and lower your scores.

But really, if your credit is that high you’d be better off consolidating on your own with a debt consolidation loan or credit card balance transfer. Any time you miss a payment, you hurt your credit score.

So if you consolidate your debt by transferring credit card balances or by taking out a personal unsecured consolidation loan, you shouldn’t have any credit damage unless you miss a payment.

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For the most part, if you use the right option for debt consolidation for your circumstances, it shouldn’t hurt your credit score. If you follow that plan correctly, this means you’re making payments on time and taking steps to cut your debt load.A personal loan can be used to consolidate debt, and the funds from a debt-consolidation loan can be used to pay off your credit card balances.So instead of making multiple credit card payments each month, you make one payment for the personal loan.If you are unavailable, a confirmation text will be sent, so connecting at your convenience is quick and easy. We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias.

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