Does consolidating your credit cards mean dirty dating co
One of the biggest pitfalls of debt consolidation is the risk of running up new debt before the consolidated debt is paid off.When you finish paying off credit cards with a consolidation loan, don’t be tempted to use the credit cards with their newly free credit limits. You may have heard that doing so could hurt your credit score, and it might.The latter might come with a zero percent introductory interest rate, giving you several months or more to pay down your balance interest-free.The best debt consolidation solution is one that simplifies your financial life or lowers your cost of debt, or both.
The problem is that bankruptcy is a serious derogatory mark on your credit.
But you can recover from credit score damage much more easily and quickly than you can recover from crushing debt.
If you are a careful money manager who fell into debt because of unusual circumstances (medical or veterinary bill, loss of employment or some other emergency) and NOT because you spent more on your credit cards than you could afford to pay off each month, then leave the accounts open.
If you’re already struggling to make your debt payments or your credit cards are maxed out, you may not qualify for a zero percent credit card balance transfer offer.
Bad credit debt consolidation loans are available from some lenders but they are costly.