Will consolidating my debt hurt my credit

Posted by / 24-Jun-2017 05:38

In addition to the advantages described above, consolidating your credit card debt could also help your credit score.

If you choose to consolidate with a personal loan, you’ll likely see a jump in your score within a few months.

Before discussing how it could help your credit score, let’s review the non-credit perks of consolidating credit card debt.

First and foremost, consolidation could save you big bucks on interest payments.

Debt consolidation combines several debts into one, ideally with a lower interest rate.As of July 2014, the average credit card interest rate is hovering around 15%.If you’re carrying debt on several cards with this interest rate, you might be shelling out hundreds every month in interest.But on the other hand, you’re probably going to end up carrying a very high balance on the new card, which is not ideal.In a perfect world, you shouldn’t be using more than 30% of your available credit on point in time.

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The right debt solution minimizes the damage you do to your financial future.

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