Consolidation vs. Settlement

My understanding is that with negotiation, you can probably pay quicker but your credit report takes a hit, but you are out of debt quicker? Anybody know typically how long these take to work out?

It really varies depending on your amount of debt, and how much money you can save up how fast to negotiate with.

i'm in a consolidation program right now i'm wondering if it would easier or cheaper to either apply for a small loan *i have about 6k in cc debt* or stay with my program *the monthy payments are a lil tough* or if i call my cc companies if they'd be able to help me better

What comes first?
Due to financial hardship, my friend is trying to
Apply for refinance or Modification for existing Mortgage loan. At the same time credit card bills are more then $17000.

Mortgage is at least 50% to monthly income.
Should she do credit card debt Consolidation or settlement first and then refinance? How will her credit will effect refinancing or Modification of existing Mortgage loan. What she should do first and how?

Thanks.

Hi Bill 731,

She should refinance or apply for Modification first. That mortgage payment is very high, 50% of income is a great strain.

Settlement thrashes your credit report to shreds, it should only be used as a last resort.

chrys

mybe this will help you decide on if settlement is right for you. In my experience i knew that when i went on my maturnity leave my job was not going to be there when i got back. and even if it was i couldnt afford to go to work anyhow due to daycare, insurances, etc(long story it was costing me more to go to work than to stay home) My husband and i were barely making ends meet as it was let alone a unexpected new baby and his needs.

This is what you need to take into consideration. can you pay x amount for a long period of time? are you confident nothing is going to change in the x amount of years till you are done with consolidation? If you can swing it it is your best option.

but if you cannot and are unsure as to if you are going to be able to meet these payments, or are expecting a loss in income soon, settlement is best. It will hurt your credit temporarily because you stop paying them. But when you are done you can get back on track with your credit pretty quickly with these debts now paid and keeping current with your new ones.

Choose this choice before bk. so if you can swing counseling do that, if not settlement is your next best option, and if that fails your doomed for bk.