Debt Settlement question
Date: Mon, 04/27/2009 - 15:35
With the new stimulus that Obama has for new home owners, my dad wants to help me buy a house. He has offered to give me the $8000 that you get back when u buy a house this year and then I will pay him after I sign and get that payment. I just pulled my credit report, and unfortunately, have $13,000 in debt on it. What I want to do would to be to settle them down to the $8000 so that I would be able to give that money back to my dad. I don't want to have him pay more then I owe him. Also, how bad does it mess your credit up (can't get much worse than it is now). Basically, I want to know if this is something that can be done in a period of a few months. I have mostly medical bills and a credit card and some utility bills due to a bad breakup. I hope this makes sense.
Thanks for any information anyone can give me :D
If you are trying to buy a house soon, settlement may not be the
If you are trying to buy a house soon, settlement may not be the wisest option as your credit score will suffer while you are in the program.
Medical bills can be tough to settle as they provided a service (not always, but it can)
Utilities are even worse as their typical collection method is just to place a negative mark on your credit until you pay (Once again, provided a service)
Credit card debt can be settled much easier (depending on the creditor) but if you take out the above two parameters, you are probably below the threshold where you can easily claim a hardship (not that that matters as much anymore, but still a small factor). I would not go with a settlement company, and most require a minimum debt of $10,000-$20,000 anyway. Depending on the creditors, there may be options available. Also, what state?
i agree that this may be a very bad idea. Frankly if you are goi
i agree that this may be a very bad idea. Frankly if you are going to finance a home you want the best rate possible and if you are going through a settlement process your score is going to plummet. if you are making the payments easily and on time continue to do so. it will be better off. Go find out what score your credit is at a place like myfico.com. there they will show you what rate you have and what a payment will be on a 250,000 loan. it will give you a great idea as to were you are and were you want to be and how much of a impact your score is on a home loan. the site was a great resource for me as im sure it will be for you also good luck , I just dont think settlement is the best solution here.
