Tagline
623-208-6098

Credit and debt management plans

When a person in Arizona has a mountain of bills they are unsure how to handle, they might consider debt consolidation. One common question that regularly comes up is the effect that debt consolidation will have on a person's credit. While every situation can vary, certain tips might be able to help a person improve their credit when they consolidate their debts.

The person may look for a loan that provides the best possible options, including the lowest interest rate possible. However, if their credit score is not as high as it could be, finding a good interest rate could be a challenge. Places to look include peer-to-peer lenders, a bank, credit union or other online sources. Before trusting a lender, it's best to investigate their reputation to make sure the deal isn't a scam. Debt consolidation of credit cards might even help a person's credit in the long run. However, new loans usually cause a short-term drop to credit scores.

A debt management plan differs from debt consolidation because they are offered through a credit counseling service and don't truly bundle up a person's debt. The credit counseling agency negotiates reduced payments with the client who then makes one payment to the credit counseling agency. A debt management plan might be a viable option for some consumers. Usually the company makes the person close all credit card accounts, which could lower credit scores for the short term.

When a consumer is in debt over their heads, they might consider debt consolidation or debt management in order to reduce their monthly outlay. A bankruptcy attorney might be able to review the advantages that filing for bankruptcy protection offers.

Source: MSN Money, "Will debt consolidation help or hurt my credit?", December 27, 2013

No Comments

Leave a comment
Comment Information
  • MCBA | Maricopa County Bar Association
  • State Bar of Arizona
  • ABA | American bar Association | Defending Liberty Pursuing Justice
  • Oregon State bar
  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Schedule A Consultation Today

Attorneys You Can Depend On And Trust

The Dodds Law Firm, PLC, is located in Surprise and serves clients throughout the West Valley area. To schedule a consultation with a lawyer, call 623-208-6098 or toll free at 877-827-9906. You can also contact us online.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy