Thats a very good guestion and one easily answered. A Formal debt consolidation (Chapter 13) has been known to have a profound effect on an individuals credit score. When you use the (Big guns) to make repayment arrangments it is usally seen by the credit bureaus as a last ditch effort.
However, many individuals opt to use an "informal" method whereby you place all of your debts in one place and have an Intermediary Service administer them to your creditors under an agreed arrangement between you and them. The Credit Score can again be effected however usually not as much as the formal arrangement Again, however, with some coaching and a business plan individuals can negotiate with creditors themselves and save a bundle in service fees and potential aggrevation. The credit score is usually unaffected because the whole deal is kept between creditor and individual and the creditors is not placed in a position to directly enter or effect your scores. Please feel free to contact me further to find out more information on an self directed informal repayment plan.
However, many individuals opt to use an "informal" method whereby you place all of your debts in one place and have an Intermediary Service administer them to your creditors under an agreed arrangement between you and them. The Credit Score can again be effected however usually not as much as the formal arrangement Again, however, with some coaching and a business plan individuals can negotiate with creditors themselves and save a bundle in service fees and potential aggrevation. The credit score is usually unaffected because the whole deal is kept between creditor and individual and the creditors is not placed in a position to directly enter or effect your scores. Please feel free to contact me further to find out more information on an self directed informal repayment plan.
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