By Stuart Lieberman
The creditors will also bring your account current in most cases and at times they may even waive penalties and
late fees. As long as you keep be making your monthly payments on time, this program will not hurt your credit rating.
So, you are wondering why when on a debt consolidation program that is does not affect your credit? Well according
to Barry Paperno, of Fair Isaac Customer Care - "Using a credit counseling service and having this situation reported
on your credit report DOES NOT have a negative impact to your FICO ® scores. However, the actions you take based on
the recommendations of a credit counseling service may, in some cases, affect your score. For example, an agreement
to settle for less than the full amount due on an account may be regarded negatively, as well as any late payments
reported either before or after you begin the plan."
As long as you have a good credit rating it will stay that way, if your credit rating is not good, then using this
type of program will help you rebuild your credit, so you will no longer be considered a risk. This is the basics
of debt consolidation.
Debt consolidation is a way of resolving your financial situation and will help you on getting back on the
right track to the financial freedom you are looking for. The burden of your situation can be solved when on this
program, helping them get out of the financial hole they may be in.
Although debt consolidation may sound like a loan it is something entirely different. THIS IS NOT A LOAN. Unlike a
loan, your debt is consolidated into ONE LOW monthly payment you DO NOT get a loan to pay off your credit cards.
Often these services are a "win-win" situation for the consumer and creditor. Your creditors wins because they save
money by eliminating the cost of collections, and in some cases a total loss if bankruptcy is declared plus they get
the money that is owed to them without settling and they also win by keeping you as a customer in good standing. You the
consumer wins cause you pay off your debt and get yourself financially set again and on the right track to help you