While unemployed, my credit cards were essentially the only thing that I was able to use to take care of all of things I needed. I have about $12,000 in credit card and auto loan debt. Now I'm in a crunch where my savings is gone and my credit cards are maxed out. I do not own a home, nor have much else in terms of equity. I am fortunate enough to have parents who do have the ability to provide me with a loan, somewhat like a debt consolidation loan, in which I could bring my balances down to $0 and pay them back monthly, plus 3% interest as opposed to the 23% interest and overage charges I'm running into with the credit card companies. How will dropping all of my balances down to zero at once effect my credit score? How do debt consolidation programs (other than Mom and Dad, in this case) work? Do debt consolidation companies hurt your score?
Asked by Anonymous at 10:30 AM on Dec. 6, 2009 in Money & Work
Answer by chica679 at 1:12 PM on Dec. 6, 2009
Answer by tyfry7496 at 1:56 PM on Dec. 6, 2009
Answer by AussieMum2 at 6:09 PM on Dec. 6, 2009
Answer by sweetstkissez22 at 11:09 AM on Dec. 7, 2009