Creditors don’t want you to use the cards if you benefit from a debt management program. If your accounts are not properly updated, contact credit agencies and your debt consolidation company if you use one. A good credit counseling program can help you determine habits you need to change to stay debt-free. Laura from Independence, Kentucky asks if she needs to close all of her credit cards if she joins the program or if they remain open.
What happens after you’ve finished the debt check?
Continuously implement your personalized 5-stage debt management plan to ensure you’re taking on what you can afford and avoid over-indebtedness. Debt audit, credit declines, loans, debt advice, budgeting, savings, news, loans for debt-checking clients, debt consolidation, budget, The Meerkat Blog, Debt Rescue, debt advice, financial education, credit cards, creditworthiness, debts, meerkats, debt verification companies. But what about after the debt review process when all of your debts are settled? Are you wondering if you can borrow during debt counseling? The answer is no, but with good reason. However, because debt can have positive or negative effects, it is usually classified as either good or bad debt.
Do I have to close my credit cards after the debt consolidation loan?
Good advisors can help you manage current debts, avoid new ones, and set you on the path to perpetual debt freedom. You also incur additional interest expenses each month, which could affect your credit rating. With a debt consolidation loan, they take into account the new loan payments and take into account your credit cards. You may notice an initial drop in your credit rating after debt consolidation when you apply for debt consolidation loans.
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Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.