Consolidating deliquent student loans

Your credit utilization ratio is calculated by comparing how much available credit you have and how much you use each month.Credit utilization accounts for 30% of your credit score.

There are other excellent resources if you are planning for college and thinking about how to pay for it.

A good place to start is the Consumer Financial Protection Bureau’s online tool to help you compare financial aid offers.

The strategy is considered in situations where people want to streamline the repayment of multiple high-interest debt amounts—often with the hopes of saving money and lowering their debt burden.

Debt consolidation is typically used by people who have mounting debt and want to reduce the number of lenders they have to pay each month.

Debt consolidation has the potential to hurt your credit score in several ways, depending on which method you use.

For people using a debt management plan for consolidation, it is important to fully understand your agreement with your credit counselor.

You can use the tools in the What Type of Loan Do I Have section to help you figure this out.

Once you know what type of loan you have, you can start figuring out how to deal with your individual circumstances.

Sometimes, credit counselors work with you to develop a debt management plan and can also help you make your payments.

Although debt management plans do not appear on your credit reports, credit counselors may sometimes require that you close your other credit accounts to ensure you don't spend outside of your repayment plan.

Imagine if you have one credit card with a limit of ,000.

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