Consolidating debt without hurting credit score

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But we may receive compensation when you click links on our site.Learn more about how we make money from our partners.Credit.com’s experts can help you understand how to get control of your debt — the smart way.We share strategies for paying down your debt without hurting your credit score, negotiating with lenders, and dealing with debt collectors.Which is why, instead of debt settlement, you should consider …A personal loan — from a bank, credit union, or online lender — large enough to cover all your high-interest credit card debt is worth looking into, for several reasons.Without a firm, strict, downright religious commitment to changing the habits that led to your alarming debt load, a consolidation loan can, in short order, turn into nothing more than a temporary relief valve. How to Get Out of Debt Without Hurting Your Credit. Once the consolidation loan is in place, you’ll need reverential discipline — which, let’s face, isn’t much fun and is hard even on saints — to change the spendthrift practices that threatened to overwhelm you in the first place.

(Pay nothing — zip, zero, squat, diddly — up front.) When the settlement is reported to the Big Three credit-tracking agencies, your rating will sink like the Lusitania, dropping almost as much as if you’d declared bankruptcy.

Once you have a precise picture of where your money goes, search for places to economize. Chances are, you can achieve savings on non-necessities such as your: Once you’ve stopped whipping out plastic for every purchase, every dollar you save is a dollar that can be plowed into reducing your credit card debt.

Experts have identified two principal ways to attack credit card debt.

If you’re not in big trouble, getting on top of your debt may be as simple as re-evaluating and rejiggering your budget. ) Make a journal of your monthly and other periodic expenses. Include every penny you earn, and every penny you spend.

There are wonderful budget apps to help you achieve this first step, many of them free.

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