Credit card debt is one of the easiest types of debt to get buried in, and it can do some of the most damage to your credit rating.
Simply having your credit balance at or above half of your credit limit will lower your credit score.
If you reach your credit limit, that can lower your score even more.
This can lead to over limit fees that can make things substantially worse for you.
The additional fees can start a chain reaction of being unable to meet the payments, which will trigger the late fees.
When these fees begin to add up, it is very hard to get out from under the debt because you will find that the minimum payments you are making are not even covering the fess that are accruing each month.
Legitimate credit card consolidation companies can help you begin to repair your credit rating in a number of ways.
The first of which being that a qualified consolidation loan professional can negotiate with your credit card companies to get many of the fees that have been added to your balance removed, lowering the balance due to pay them off.
Then if you are approved for the consolidation loan, then outstanding debt will be paid off by the loan.
This will clear off all of the negative, unpaid credit card accounts from your credit report and show them as paid in full.
The negative entries will be replaced with the addition of the consolidation loan onto your credit report.
The more payments that you make on time, the better your credit rating will get.
The same goes for the negatively reported items.
The more time that passes without a negative report to the bureau, the better your score will get.
Too much debt or late payments on your debt will ruin your credit score.
A reputable credit card debt consolidation company can be the first step to rebuilding your credit rating.