Vision Credit Education, Inc.

Debt consolidation may seem all but impossible now that Ohio lenders frequently require some of the best credit scores before they will extend credit. This can be nearly impossible if you are in debt, since 30% of the credit scoring formula penalizes you for high debt balances. You may still have consolidation options.

Lenders that extend credit to Ohio residents have been burned by high default rates and an increase in personal bankruptcy filings. This is especially true in Cleveland, where the foreclosure rates have been through the roof.

The easy credit of 2004-2006 is now history. Instead of requiring at least a 630 credit score, many mainstream lenders now want you to have at least a 720 before they are willing to extend credit. It has gotten difficult to gain access to credit.

Debt consolidation loans are almost unheard of now since home equity values have plummeted. If you have high debt balances, then your credit score has dropped and your lending options may have dried up. There is still another consolidation option that might be possible if you meet creditor eligibility requirements.

Most major credit card issuers support credit counseling organizations financially to provide counseling options to distressed cardholders. In addition to this financial support, they also provide various benefits as incentives to help you stay current, avoid default and pay off your debt balances at an accelerated rate. This is known as a debt management program.

Benefits normally include some or all of these concessions from credit card companies:

• lower monthly payments
• lower finance charges
• late fee forgiveness

Credit counseling organizations serving Ohio provide individual counseling sessions and debt management programs. You can benefit from a consolidated payment that you schedule to meet your needs. If you would like consideration for a debt management program, you must meet the following qualifications:

1. You must be an Ohio resident
2. You must have debt balances on multiple credit accounts
3. You must be close to a break-even each month (small deficits are OK)

Keep in mind that even if you do not meet eligibility requirements for a debt management plan, you may still benefit from a credit counseling session. You can get valuable budgeting assistance and even receive an action plan for getting yourself on track financially.