Is consolidating debt bad


03-Aug-2017 14:03

That’s because some may be debt settlement companies that convince you to stop paying your debts and “instead pay into a special account,” the CFPB warns.

“The company will then use this money to attempt to negotiate with creditors to reduce the amount of principal you pay off.” If you’re considering this option, try to speak with a nonprofit credit counselor first because debt settlement can put your credit in jeopardy.

Once you’ve chosen a debt consolidation method, it’s a good idea to keep the total cost as low as possible.

When researching loan consolidation options, you may come across what’s known as debt consolidation companies.



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