Comments on: Debt consolidation will leave you with a huge debt ratio, and close all your credit cards?

By: calalum1996

calalum1996 — Sun, 20 Dec 2009 17:52:46 +0000

The temptation is to have lower payments, but that does mean you’ll take longer to pay off the debts, and so you’ll end up paying a huge amount more in interest rates over time. Possibly thousands more.

Be careful–think this through very carefully and do the math.

By: Gordon D

Gordon D — Sat, 19 Dec 2009 10:45:19 +0000

No it does not up your score.
Providing you consolidate and lower your repayments, you could try continuing to pay the new lower payment debt, by paying as much as you were paying before consolidation.

That will increase your principal payment
and continue to lower your interest : princiapl ratio

By: J'adore

J'adore — Fri, 18 Dec 2009 09:38:46 +0000

first of all debt consolidation only consolidates what you tell them too. They can’t get access to all your debts so the answer is no. if you have 15 accounts and you only need to consolidate 10 of them because the other 5 are on time or close to being paid off, or you just aren’t going to pay them off, they wont know unless you tell them and give them the account numbers.

No you do not close your credit card accounts. you can just not take on any new debts like car, mortgage, loans and other larger debts. My mother in law did it and she was still able to use her credit cards… but she may not have had them consolidated. But if you are trying to pay off those cards then it would be dumb to continue using them.

By: kevin h

kevin h — Wed, 16 Dec 2009 15:17:30 +0000

ANSWER: Pay your bills!
OTHER ANSWER: Pay your bills!