Not everyone benefits from credit card debt consolidation. If you suddenly have a zero-dollar balance on your credit cards, the temptation to use them might be too strong to resist if an unexpected expense pops up. “When you realize you don’t have the cash flow,” said Tayne, “you’re going to start using credit cards again.
It might not be the best option for you in some cases. So does debt consolidation hurt your credit in some cases? Once you pay off that credit card, what happens is the credit card companies start sending you offers again.
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One strategy that could help is debt consolidation.The lower your credit utilization, the better it is for your score.You also will add another type of credit to your credit history when you take out a personal loan, a factor that possibly could raise your credit score if you don’t have other installment loans.“You would only have to worry about a single monthly payment, cutting the number of payments you are managing now,” said Leslie Tayne, a debt settlement attorney at Tayne Law Group and the author of the book “Life & Debt.” If you have a hard time keeping track of multiple payments and due dates, consolidating your debt could help ease the process.One thing credit cards don’t do is set you up with a firm end date for when your debt will be repaid.