Is consolidating debt bad for your credit stephanie rice and michael phelps dating

Remember, 30% of your score is based on how much credit you are utilizing on your cards.

According to one study, the average credit score increased 21 points within three months of getting a debt consolidation loan.

And any damage to your credit score as a result should be minimal and brief.

If you have trouble making ends meet, if your stack of monthly bills is covering every inch of the kitchen table, if the money coming in doesn’t come close to the money going out, it would seem like you’ve officially reached the end of your financial rope. Even people who practice financial responsibility can find themselves backed into a corner.

There are all types of debt consolidation loans, even if you have bad credit. Sometimes, it’s an unexpected life event, such as a major medical crisis or a bad divorce.

It almost seems too good to be true, particularly if you get a favorable interest rate, so it’s an option well worth investigating.

Taking stress out of your financial life seems like a great idea.

Reducing monthly payments to a single source sounds good to almost anyone in dire need. It works only if the debt consolidation loan reduces the interest rate for your debts, in addition to cutting back the amount you pay each month.

So, it’s important to be organized and have precise financial records.

The average APR on credit cards in June 2017 was 16.15%, but many consumers have a much higher rate.

If most of your debt is credit cards, you’re very likely to come out ahead with a debt consolidation program.

Lending Club offers loans up to ,000 and charges borrowers an origination fee of 1% to 5%, depending on the credit risk.

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