What You Need to Know About Debt Consolidation & Your Credit Rating

Are you avoiding opening your credit card bills each month because you can no longer afford to make the minimum payments? Are you tired of juggling which bills to pay and which to put off each time you get paid?

If this sounds like your situation, you should consider debt consolidation to combine all of your outstanding balances into one simple repayment plan. Through debt consolidation, you can eliminate the stress of being behind on your monthly bills and also save a substantial amount of money on interest.

However, before you decide if debt consolidation is right for you, know that it can have a major impact on your credit rating. Each time you apply for a new credit account to consolidate your debt, you will have a “hard inquiry” on your report that can lower your credit rating by up to five points. Be cautious of how many times you attempt to apply for a loan or balance transfer because too many inquiries in a short period can damage your credit rating and label you a risk to future lenders.

Speak to an Experienced Debt Consolidation Lawyer Today

Although debt consolidation can lower your credit rating, it might be the best option if you want to avoid filing for bankruptcy. Our lawyers at The Buchalter Law Group are here to answer all of your questions and guide you through the entire legal process to ensure your best interests are protected.

We have negotiated with creditors on behalf of countless clients to ensure they obtain financial security. Whether you are facing foreclosure or struggling with debt because of a medical emergency, we have the skills and resources you need to secure a fair case result.

Give us a call today at (321) 320-6088 to schedule your free case evaluation with a member of our law firm.

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