ANSWERS: 3
  • It depends how you go about consolidating it. If you get an unsecured loan from any provider eg. bank, building society & pay off your current debts then the only thiing to register on your credit rating will be an application for credit which will be discounted after 3 months. If you go through a debt consolidation company they will negotiate with your current providers and that will be registered on your credit rating, basically you wont get any other credit until its paid off. If you use a managed loan that will also show until its paid off & will have a negative effect.
  • Getting a hold of debt will cause less of a flaw on your credit rating than getting behin on paying bills. I agree with what the first guy said! Try calling your credit card companies and ask for lower interest rate. If you have credit available on your cheapest card, consolidate your debt to it. Ask your bank for a loan first, then go to a debt repayment place. But ask how they do business....do they pay the debt off for you and then you pay them with higher interest? Get proof they have paid your bills!
  • You may get some articles about debt consolidation and its effect from http://debtcons.freehostia.com

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