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Credit and debt counseling consolidating

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Many people ask, What’s the best way to get out of debt?Then they may often think, But I have good credit and I really don’t want to hurt it.

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If you prefer to pay off your debt on your own, you might consider a snowball or avalanche payment method.If your payment history always shows on-time payments, for example, and you suddenly file for bankruptcy, your score will probably drop more than someone who was already severely delinquent.But it’s impossible to predict how a particular approach will impact your individual credit if you’re not familiar with your credit history—so get a free credit report from to review that history.It doesn’t make much of a difference whether you choose the avalanche method or the snowball method, but many find the snowball method is easier to stick to.Neither approach will hurt your credit, as long as you make the minimum payments on all of your cards on time.The debt snowball is when you pay off your debts one at a time, starting with the lowest balance.

The debt avalanche works similarly, except you start with your highest balance and work your way down.

And if you have a lower monthly payment than before, you can better avoid late payments.

This will help your credit score recover more quickly if you’ve fallen behind in the past.

To help you decide which debt relief plan is best for you, we’ve provided a brief overview of each option and how they may affect your credit in the short term and long term.

Before we dive into the different debt relief options, understand that the debt you carry makes up just under one-third of your credit score.

Re-aging an account means bringing it back to “current” status, so your credit report will no longer list you as behind.