Anthony's credit score fell from 730 to 590 after enrolling. Sandra's credit was already in the 500s because of missed payments and collections. Lauren, meanwhile, actually saw her score improve after entering the program.
Because LITs don’t set their own rates, LIT Victor Fong of Fong & Partners recommends focusing less on cost and more on whether the trustee is someone you feel comfortable working with.
True debt consolidation, like a personal loan, line of credit, or balance transfer, usually has a limited impact on your credit score, aside from a hard credit check or closing credit cards.
Shelby turned $45,000 of debt into a $250 monthly payment she could actually afford. Christopher reduced a $20,100 balance down to about $7,000. Chris finally escaped the cycle of moving money around while interest kept growing.
