The truth is that, yes, debt consolidation can hurt your credit. If you need to pay off debts and your credit score is already low, than you don't have much to lose. But make sure that you are aware of the risks. Debt consolidation is just a notch above bankruptcy.
Don't fool yourself. Getting a debt consolidation loan is not a piece of cake. Some people will not qualify. It is important to look around at different companies to find one that can suit your needs. Remember that if your credit is in really bad shape that you may not qualify for the best rates.
Though your credit may have already taken a hit, choosing debt consolidation can help you to get back on the right path. Debt consolidation can help you lower monthly payments, pay more towards your owed principle amount, and it can help to start to rebuild your credit.
Many different companies offer debt consolidation advice. They cover topics like how to smartly use your credit card and establishing a budget that you can manage. When looking for professional debt help, be sure that you choose a company with a good reputation.
Student loan debt consolidation involves combining many different student loans into one larger loan and allows you to lock in a better rate for the length of paying it off. Most current rates run from around 4.7% to 8.25%. This type of debt consolidation helps to make the loan payment more manageable.
Debt consolidation involves getting one loan that allows you to pay off a bunch of other ones. Consolidating your loans into one like this can help you get a lower or fixed interest rate and is much easier to manage.