Credit repair debt consolidation – An ideal way to repair credit

Recently this article was submitted to us, although we typically do not share many articles from other people this is one that has some good information about some different programs that we do not typically discuss. We hope you find this information helpful, please let us know if you have any questions that we can help you with.


By Amy Lewis, Financial Writer

Credit score is undoubtedly a particular aspect of your financial health, which can prove more important than you might actually give it credit for. In fact, many people equate a healthy credit score with financial freedom. So, if you’re looking for ways to repair your credit score, then credit repair debt consolidation can actually be a good option.

Credit repair debt consolidation

Credit repair debt consolidation is essentially a process through which you can obtain a single loan. This single loan can then be used to pay off all your other creditors in a lump sum form. Basically you’ve got to go via a financial institution when you want to consolidate credit or debt. Now fact remains that since credit repair debt consolidation has become so very popular of late, hence there are companies which are specifically dealing with these loans.

The right choice for you

Basically you need to first determine whether or not credit repair debt consolidation is the right choice for you. Understand how badly you need to repair your credit more than anything else. This particular program isn’t meant for everyone and so it’s important that you weigh the pros and cons of it before you come to a decision.

Advantages of credit repair debt consolidation

When you’re out to consolidate credit or debt, then it’s important for you to judge the advantages. Have a look at the following –

1.      It lowers your interest rate: The primary advantage of credit repair debt consolidation is that you can take advantage of a lower rate of interest on your outstanding debts as compared to the interest rates generally charged on your unsecured debts.

2.      It increases your credit rating: This is definitely a solid way to boost your credit score. You can obtain an installment payment loan that can help you a great deal. Basically installment loans happen to be those that can be obtained in a lump sum and then payments can be made on a recurring and regular manner until your debt is fully paid off.

3.      It pays your creditors in full: This is perhaps one of the best ways by which your creditors can be paid off in full. This is rather important for then you stand absolved of any responsibility towards your creditors and in turn this also ensures that your credit remains in good standing.

Disadvantages of credit repair debt consolidation

Here are 2 of the major disadvantages involved with credit repair debt consolidation –

1.      The inflexibility involved: Creditors are often flexible when it comes to missed payments. However, unlike the creditors these financial institutions are unlikely to be as flexible in such cases. In fact, they’re prone to demanding more payment.

2.      The temptation factor: Generally it can be tempting to increase your spending when you come to know that you’ve got so much credit at your disposal. You’ve got to resist this temptation for otherwise it can prove to be disastrous.

Keep in mind the above factors and then come to a decision about credit repair debt consolidation.

Author: Dan Beck

Dan Beck is a credit repair expert who teaches consumers how to create an "A Rated" credit profile. Would you like to receive a FREE Consultation with Dan? If so, click here.

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