Where do we go from here?
Date: Fri, 05/22/2009 - 03:59
2 years ago, I had to leave a job that I was making over 10K more a year than at present. During that time, we have been(barely) being able to make our Credit card, mortgage and other payments. It has been becoming increasingly difficult where we have been 'borrowing from Peter to pay Paul' and I know it will soon blow up around us. We are presently on time with our 1st mortgage and credit cards, but are now a month behind with car payments and 2nd mortgage. I know its going to only get worse before it gets better. We have 3 kids to clothe and feed, and our oldest is 2 years away from college. My question is, what would be the best recourse for us? Debt Consolidation, Debt Settlement? Not sure where to go from here. We definately dont want to claim bankruptcy. At this point, I know that our credit rating will start to really plummet if we dont do something soon. Not sure where to go from here. Any suggestions??? Thanks!
Although it is true that both debt settlement and debt consolida
Although it is true that both debt settlement and debt consolidation will affect your credit score, I think you should go for debt settlement to pay back your cc debts. This is because under the settlement plan your outstanding debt reduces by 40 to 50%. For settling you debt you can either do it yourself by contacting your creditor and negotiating with them directly or register with a good debt settlement company.
debt
Just to give a bit of 'personal' advice, if you DO go for some kind of Debt Consolidation, REALLY check out the Consolidation company you want to do business with. I signed up with one, a few years ago. Seemed like nothing was being done and I was paying money to them every month + fees, etc. Sometimes, you would be paying more to the Debt Cons. company them what your debt is actually worth. Just becareful..........!!
