Neverending
Date: Sun, 06/03/2007 - 22:33
My wife and I have been married for 10 years. In that time we have managed to get ourselves in quite a bit of debt. I am trying to gather some information on the pros and cons for debt consolidation.
Thank you,
Jason Hutchison
My thoughts... If you own a home, you can go the home equity
My thoughts...
If you own a home, you can go the home equity line of credit (HELOC) route...but if you get into trouble later, you could end up facing foreclosure.
Consolidation, you can do your yourself (see the DIY section), or hire a company to negotiate with your creditors for you. Your credit will dip a little while you're in the program, but once you've completed it, you're in a much better shape.
Then there's settlement. You default on your lines of credit. Slowly, you start building up funds to negotiate a reduced balance you'd pay in full (40-60% is the usual range). Your credit report gets trashed due to all of the late payments/charge offs you'll accumulate. You might even be sued before you have a chance to pay off a creditor(s).
