debt consolidation?
Girl84 asked:
I am looking to help from elite financial services to consolidate my loans and bills. How will this affect me in the end credit wise? Does it hurt your credit if doing so?
debt consolidation loan
I am looking to help from elite financial services to consolidate my loans and bills. How will this affect me in the end credit wise? Does it hurt your credit if doing so?
debt consolidation loan
Tags: Credit Wise, Financial Services, Loans
March 31st, 2009 at 10:05 pm
Kansieo.com
Almost as bad as a bankruptcy will look. Don’t do it.
April 2nd, 2009 at 11:22 pm
debt consolidation loan
If you are simply getting 1 loan to pay off your old debts…….Not a big deal. If they are negotiating to pay less than you owe you will harm your credit. Your report will show that those debts were NOT paid as agreed and settled for less than the original amount borrowed. The latter is always better than not paying at all.
April 4th, 2009 at 5:33 am
Caffeinated Content
It all depends on what type of company is “Elite Financial Services”. What are they offering you?:
- A Consolidation loan
- A Debt Management Program,or
- A Settlement
A consolidation loan will pay for all of your debt,and now instead of owing several companies,you owe only one (Elite Financial).On your credit report, all of your debt will show paid off and there will be a new creditor added(Elite Financial). It will only help your credit if you get a really low APR on the loan and if you are able to keep up with your payments to Elite Financial.
A debt management program won’t pay your debt all at once, but month to month. It is a re-payment plan. You get lower APRs in each one of your credit accounts. It will save you money in finance charges and help you pay off the debt quicker( say 5 years instead of 45 years). The downside is that you will need to close all of your credit card accounts and won’t be able to charge on them. Closing the accounts will impact your credit score. It won’t ruin your credit but will lower your score a little bit.
A settlement is when you pay less than you owe. It looks really bad on your credit report. It stays there as long as a bankruptcy. If you go through a settlement agency, they will take small monthly payments until they save enough money to try to settle. It can take years and in the mean time you get harassing phone calls from creditors. A settlement is not guaranteed until you get it in writing by the creditor.
April 4th, 2009 at 6:53 pm
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OK, so Elite Financial is a debt settlement firm. They appear to be VERY new, so be aware. I’d recommend a firm that has been around much longer and has more stability.
Here are large debt settlement firms (try to find a large one that has enough cleints that they have established relationships with creditors and ideally is in the industry groups and the BBB):
Freedom Debt Relief
Debt Settlement USA
DebtXS
Century Negotiations
New Debt Relief
If you choose a debt settlement program, be aware that while you’ll likely save money, your credit rating will be negatively impacted while in the program. Good luck and do your homework.