One thing that lots of people wonder is if a debt consolidation will hurt their Fico score, and to tell you the truth it will if you do it a certain way. The one way a debt consolidation can hurt your credit score is if you utilize a debt consolidation program to do it. The reason this will hurt your Fico score is because most programs require that you pay them the payment every month and they’ll they will send it to your creditors. For the first 6 months or so the debt consolidation program takes the payment you have sent and keeps that for themselves as their fee and while you’re doing this the payment to your creditors is not being paid and that is why your credit gets hurt.
If you don’t want your credit to get hurt the best thing for you to do is do the debt consolidation yourself . What I mean by this is get an account that you can put all your balances on and then pay that account yourself . Most people think that doing a debt consolidation is really tough and it can be if you do not know what you’re doing, but how do you know unless you try?
The first thing I suggest for anybody planning on doing a debt consolidation is first eliminate any credit cards you have so you won’t rack up any more debt. When it comes to debt credit cards are the number one cause for it. Think about one thing when it comes to credit cards, if you did not have any credit cards throughout your life where would you be? The one thing I want you to come away with after reading this article is that it’s up to you to do the debt consolidation and it does not matter whether you do the actual consolidation yourself or hire somebody as long as it gets done.