Credit Repair Questions & Answers

Debt consolidation is the process of combining several debts or loans into one new loan and covers all the unsecured debts, like credit cards, medical bills and utility bills. The end result is one monthly payment instead of several. The single payment amount is lower than the total of all payment amounts of the original debts thereby making it easier to meet monthly obligations.

You can take the “do it yourself approach” or sign up with a reputable debt consolidation company. There are pros and cons to each

Using the do it yourself approach involves combining all unsecured debts into one new loan. Usually, to get a lower rate, you need to put up some collateral, such as a home. If you default on a secured loan, you could lose the property you used as collateral.

If you take out a consolidation loan yourself and combine all those debts, you don’t owe less money. You may get a lower interest rate but you still owe the money. That is one disadvantage to do it yourself debt consolidation; you end up paying more money in the long run. You get one monthly payment but you have extended the loan. Consequently you have greatly increased the amount you have to pay as you are paying more interest on the extended consolidated loan.

Alternatively you could learn to negotiate with the creditors yourself to get a lower rate and to stretch out the payments (at a reduced rate).

A respectable debt consolidation company can eliminate accrued interest and finance charges on your behalf. That will significantly lower your outstanding debt. They charge fees for the service but if they reduced your total outstanding debt then you still may save money in the long run.

Finding a legitimate company will take some research on your part. There are many resources online to help you. There are risk and advantages so beware.

After you have found a potential company then write down a list of questions to ask.

Bottom line is debt consolidation can be a legitimate debt solution if used correctly. Be prepared, and beware.

By: Brian Miller

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Yahoo_Asker_G asked:


What is it that creditors know that they don’t want the general public to find out about paying credit card debt?

Yahoo_Asker_G asked:


What is it that creditors know that they don’t want the general public to find out about paying credit card debt?

RunsWithKnife asked:


I owe about $12,000 in credit card debt and I wanted to make that my year’s goal to pay it off, but a lot of the websites I find require that you own a home, or charge a huge interest for someone to “negotiate” with your creditors to bring down interest. Does anyone know of a good resource where I can just consolidate the debt and make one reasonable payment?

tak3032 asked:


I want to know how do they determine the credit score point system. I know what is credit and how it works. But I want to know the numbers part like if someone runs your credit report it takes off 2points from your score, another is what if your late on your payment how much does it take off then and if I have a loan for a certain amount does that mean I get a big score or a low score? I have some old accounts (5yrs old) that need to be paid off but if I do pay them off will it really make a difference on my score? Next thing you know I pay them off and then my score only goes up by 4 or 5 points or will I even get a point. What would be the purpose then? At the same time if creditors do look at my report yes it would show paid off but the history would still show that I was delinquent for 5yrs. Whose gonna want to give me a loan any ways? Basically what is the point system and how is it calculated? Let me know so I can start to repair my credit. Much thanks and I appreciate it!!!

AMEFIKA asked:


When I apply for loans and tell the creditors what my credit score is they still run my credit. All the reports I read talk about the imporatnce of knowing your credit score and that’s fine. But what’s the importance of knowing my score when the creditors run it anyway? Also, how do we know that the rates that we qualify for are true based on ourcredit score? Is there a chart tat we can put our credit score up against and it tells us what rates we qualify for?

methodistbambina asked:


I’m in my late 20’s and my soon to be husband is in his early thirties. I have credit card debt, but I’m working on it. I have a couple bank accounts. I also have a really good credit score. My soon to be husband filed for bankruptcy a couple years ago after he got divorced to avoid paying for bills his wife wasn’t paying. He doesn’t have a credit card. He does have a bank account. I have no idea what his credit score is. Will my credit score be affected when we get married? Should we share a bank account when we get married?
Note: His wife bought things and then didn’t pay for the bills for them. They were items she bought and used when they were separated. He didn’t see or use them. When she didn’t pay for them the creditors came after her. She claimed she wasn’t working and then they came after him after they were divorced. He was advised to file bankruptcy so the creditors would stop going after him.