Why Debt Consolidation
is not the best option ?
|What does Debt Consolidation Do?||What does Credit Repair Do?|
|Definition||A strategy for simplifying payments and reducing interest by combining multiple debts||A plan to rebuild credit by disputing credit report errors and verifying information with creditors|
|Cost||Free, though you may need a certain credit score to qualify for a debt consolidation loan||Free to do on your own, and anywhere from $10 to $250 per month to work with a professional company|
|Advantages||Generally best for people with decent credit scores looking to simplify debt payments that are already under control||Helpful for anyone with a lower credit score, difficulties managing credit or an inaccurate credit report|
|How does it
|May temporarily reduce credit score due to hard inquiry, but can improve score over time||Not guaranteed to improve score, but often has a positive effect over time|