Consolidating debt good thing
As for the practice of transferring credit card balances, that joined the casualty list of the credit crunch.
“Credit is only being extended to those who are truly credit worthy,” says Cunninham.
But what about different forms of debt consolidation?
Consolidating debt is usually one of your first lines of defense against the bad outcomes of severe financial distress, but can the solution also cause any delay to achieving your future goals?
And still, once you complete the program, you’ll be back on more solid financial ground.
If you complete the program and become completely free of credit card debt, then your debt-to-income ratio will be good.
Buying a home may not be the right financial choice during the program, even if you can.
As long as you make the payments on the solution you choose to use (either for the consolidated debt on a single credit card, or to pay of the outstanding loan balance) then there’s no reason a lender would look at this negatively when you apply for a mortgage.These days, she says more people either have little or no equity in their home.