Missing even one payment on an account will hurt your credit history and your credit scores.Additionally, if the company managing your payments under your debt consolidation plan fails to make the payments on time, you are responsible, and those late payments may be reflected on your credit reports.Consolidation means that your various debts, such as credit card bills or loan payments, are rolled into one monthly payment.If you have multiple credit card accounts or loans, debt consolidation through a credit counseling service can help simplify or lower your payments.With a home equity loan, the lender advances you the total loan amount upfront, while a home equity credit line provides a source of funds that you can draw on as needed.But keep in mind, these are secured loans that require you to put up your home as collateral.
Yet since bankruptcy has far-reaching and long-lasting results, you should first consider other debt management options.
Credit counseling services provide various resources to help solve your money problems.
From starting a budget to educational programs on money management, counselors discuss your entire financial situation and help you develop a personalized plan.
If you are unable to make payments on time, you could lose your home.
To decide if debt consolidation is right for you, contact a credit counseling service accredited with either of these organizations: If you have a problem with a lender concerning debt consolidation, you should first contact the lender.
You can find free or low-cost credit counseling options at: Under the provisions of the Servicemembers Civil Relief Act (SCRA), you may qualify for a reduced interest rate on mortgage payments or credit card debt, protection from eviction, or a delay of all civil court actions, such as bankruptcy, foreclosure, or divorce proceedings.