Consolidating credit debt loan

Federal student loans can be consolidated through the Federal Direct Consolidation Loan Program.Your credit score is not considered for this program and borrowers that are up to date on their payments are eligible.In the case of most medical debt, consolidation might not be the answer if you are hoping to save money on interest payments.

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Credit counseling organizations are typically non-profits that exist to advise people on how to manage their money and establish budgets.

Sometimes, credit counselors work with you to develop a debt management plan and can also help you make your payments.

Payment history is the most important factor in calculating your credit score—accounting for 35% of your FICOWith a debt consolidation loan, it is important to first know what range your credit score falls into.

For people with a "poor" credit score it may be difficult to get approved for a new loan to use for consolidation.

But it is important to be careful of restricting yourself when consolidating student loans.

Depending on whether you have private or government-backed loans, consolidating can bind you to a higher monthly payment or longer term.

Debt consolidation has the potential to help or hurt your credit score—depending on which method you use and how diligent you are with your repayment plan.

The strategy is considered in situations where people want to streamline the repayment of multiple high-interest debt amounts—often with the hopes of saving money and lowering their debt burden.

As you roll revolving credit debt into a debt consolidation loan, and if you keep your balances on those accounts low, this can help to reduce your credit utilization and in time help boost your credit score.

While you can consolidate many different types of existing debt, it is important to first know what the interest rate is on your current loan in order to see if debt consolidation will be helpful.

People with "fair" to "exceptional" credit scores will have an easier time getting approved for a new loan, and will also be eligible for a lower interest rate.

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