Newbie looking for debt settlement advice
Date: Sat, 03/29/2008 - 18:01
Hi all --
First post here and looking for sage advice. So here is my story. I am currently a graduate student and married (nearing our big 2 year anniversary!). My wife and I starting accumulating credit card debt several years ago and, to make a long story short, are about 18000 under. We are barely (and I mean by shear luck) making the monthly payments -- minimums at that -- and we are looking for alternatives.
I have never missed a payment and have no negative marks on my credit report. My interest rates have jumped due to my high debt-to-income ratio.
So the bottom line is that we need to decide which option to go with. debt settlement looks more affordable and, from what I have read, we could get debt free in 2 years. However, I suspect it will hurt my credit rating. debt consolidation looks nice because it lowers rates, but I don't know what it does to my rating.
I was hoping people here could help us weigh the pros and cons. I also have some more specific questions:
-1- Once I am out of the settlement program (2 years, for ex), how long will it take for my credit to repair>
-2- Related to that, will it prohibit us from buying a house in two years?
See, once I am out of school in 2 years, I will be making good money and we will certainly be able to afford a house. I am afraid that banks may deny me due to a bad credit rating.
Any help is appreciated.
Thanks!
Adam
First post here and looking for sage advice. So here is my story. I am currently a graduate student and married (nearing our big 2 year anniversary!). My wife and I starting accumulating credit card debt several years ago and, to make a long story short, are about 18000 under. We are barely (and I mean by shear luck) making the monthly payments -- minimums at that -- and we are looking for alternatives.
I have never missed a payment and have no negative marks on my credit report. My interest rates have jumped due to my high debt-to-income ratio.
So the bottom line is that we need to decide which option to go with. debt settlement looks more affordable and, from what I have read, we could get debt free in 2 years. However, I suspect it will hurt my credit rating. debt consolidation looks nice because it lowers rates, but I don't know what it does to my rating.
I was hoping people here could help us weigh the pros and cons. I also have some more specific questions:
-1- Once I am out of the settlement program (2 years, for ex), how long will it take for my credit to repair>
-2- Related to that, will it prohibit us from buying a house in two years?
See, once I am out of school in 2 years, I will be making good money and we will certainly be able to afford a house. I am afraid that banks may deny me due to a bad credit rating.
Any help is appreciated.
Thanks!
Adam
As a mortgage lender I can tell you that your credit has to be c
As a mortgage lender I can tell you that your credit has to be current on everything for at least a year before you can buy a house. Federal Housing is very forgiving as long as you had a true hardship. So it you pay your final debt settlement payment in Dec 2010 - you would probably have to wait until Dec 2012. Also, if you choose debt settlement there is no guarantee you won't get sued and that will go on your credit as a judgement. Take the free consultation to your right - get a free consultation with a bankruptcy attorney. Look at all your options.
Sorry - I meant 2011 - a year later with current payments.
Sorry - I meant 2011 - a year later with current payments.