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How Debt Consolidation Affects Credit

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From Quick Guide: Credit Debt Guide

Summary: Debt consolidation affects credit by placing individuals in credit management programs that will help them eliminate debt. Discover how a credit score can be affected negatively by debt consolidation with help from an experienced businessman in this free video on credit card debt.

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By John Niemira
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John Niemira is a professor of business at Stevens-Henager College in Salt Lake City, Utah.read more

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Video Transcript

"Hi my name is John Niemira and I want to talk to you today about how debt consolidation will affect your credit, your credit rating and your credit score. Debt consolidation is a great service to help in certain situations. if you're in debt, too many credit cards, too many things going on in your life with the financial side of it, you can maybe call a debt consolidator and see what they can do to help you out with a plan. But how will it affect your credit? There's a couple different ways it can affect your credit. Think about the side if you don't get any help. How will those credit marks each and every month going to hurt your credit score and credit rating versus consolidation. They will put usually one mark on your credit per month that you are in credit consolidation. You're in a credit management program and it is a negative effect, it can lower your score a few points but it's better than having all these marks on your credit each and every month and really reducing your score and really looking bad on your credit especially when you want to go buy something. If you need anymore information on this subject or any other subject in the business field, my e-mail address is jniemira@gmail.com."

eHow Article: How Debt Consolidation Affects Credit

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