What is debt consolidation?

Debt consolidation plans involve reorganizing your outstanding debts with your existing creditors. Money is not loaned and creditors do not change, however, the terms and conditions under which the outstanding debt can be repaid usually changes significantly.

The purpose of debt consolidation is to put you on a road to paying off your debts at a faster rate while at the same time, making lower monthly payments. Using a debt consolidation plan usually helps improve your credit as well, since most creditors report payments received under this plan as prompt payment.

Debt consolidation information on CreditSoup.com

What are the three Credit Bureaus and how do they affect my credit?

In the United States Equifax, Experian, and Trans Union are the three major credit bureaus that provide nationwide coverage of consumer credit information. Many national lenders report consumer credit information to all three. However, smaller banks, most credit unions and other credit grantors may report to only one, or none. Therefore, the information you receive from one credit bureau may not be the same as what you would receive from another credit bureau.

How long can I wait to pay a bill before it shows up on my credit report as being late?

Payments must be at least 30 days late before they can appear on your credit report. Since this is not a long period of time, it is best to pay your bills as soon as possible or in a timely manner after receiving them.

How long will late payments or bankruptcy remain on my credit report?

Late payments (30 days past the due time) will appear on your credit report for 7 years and a bankruptcy will appear on your credit report for 10 years.

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