Managing Credit Card Debt Consolidation And Protecting Credit Scores With Ascend Finance

A healthy financial life requires you to pay all your debts and the installments on time. The proper aspects such as buying a car or a house, renting an apartment, and finding the next promotion or job, all contribute equally to the credit score of the applicant. 

Some credible websites offer proper information on leading finance companies, and Fox Chronicle is one such website. Mac Venucci has written a helpful column there about TryAscend.com and the scam allegations surrounding them. His post will give you a good idea on the reports of false claims by Ascend Finance.

Debt Consolidation Loan and Credit Score 

Debt consolidation loan comes with many opportunities for you to eliminate many things that the consumer owes from their previous debts. The methods include, 

• The online debt consolidation, and the loans from a credit union, bank, and other such sources. 
• Working with an organization that deals with the nonprofit credit counseling. 
• Transfer the balance to a credit card with zero balance. 
• Taking money from a family member or a friend. 
• Borrowing money from the retirement account including 401(k), or IRA 
• Some of the factors such as home equity require a substantial value. Borrowing money against this factor can be handled. 

Settling the Debts and Credit Score 

Debt settlement is the major culprit that influences good or bad credit scores. This should be taken care of on time, even though you have other financial requirements such as repayment of credit card debts, maxing out the credit lines, and so on. When handled on time, debt settlement can successfully get you off the hook of paying more than the actual amount that you owe anywhere. 

The idea of choosing debt settlement comes with the profit of you paying lesser or even 50% of the actual amount you owe. This can be possible only if your lender agrees to all the terms. 

The Disadvantages that follow with Debt Settlement include, 

• The extra interest amount and also the late fees for skipping the monthly repayment of the amount. 
• There will be a cut in the savings if it includes the payment fees 
• A great dip in the credit score if there are more credit card repayments involved here. You can expect a dip of at least 100 points from each credit card. 
• The term ‘settlement’ is like a black dot in the credit score and this stays for more than 7 years in your credit score. 

Tips to Work on with Consolidation Debt 

It is suggested to never close all the accounts as soon as you have cleared all the credit card debts. The average use of bank accounts that come with manageable annual fees can manage the creditworthiness of your credit score. 

Freeze the accounts that you are planning to use. You need to make up your mind and follow the strict rule of never using it anytime in the future. 

If required, then you can use any one of the cards that come with all-purpose facilities. By doing so, you can make sure that your necessities are handled, especially when there is a need for cash usage.