Consolidating debt hurt credit score

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The truth is that having any debt means you are financially beholden to a creditor and you can’t put your money in your own pocket until your obligation is met.You’ve got several options when you make the decision to eliminate debt.Banks typically only want to lend to people with high credit score.An Alternative lender will work with you to help you get back on track; just make sure you choose a reputable lender.Oftentimes, people wind up with multiple types of debt—typically in the form of credit cards—with varying interest rates and varying amounts owed on each card.It can be difficult to keep track of the monthly payments and some wind up with more debt than they can handle.It won’t prevent you from getting credit in the future, but for a time some credit products will be unavailable to you and others will come at very steep prices.

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Credit cards, overdue bills, student loans, and any other kind of debt imaginable, crush families beneath this weight. There is a way out without declaring bankruptcy: debt consolidation.While getting out of debt can be life changing, you need to consider how a debt consolidation loan will affect your credit rating. We’ll go over all of these questions below so that you can be as equipped as possible to finally tackle your debts.The debt consolidation loan is probably the most popular form of debt consolidation. Debt is costly and can prevent us from reaching financial goals (or at least prevent us from reaching them when we’d like to).Some people consider credit card debt bad and mortgage or student loan debt good.

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