Looking for some answers

If you are looking towards consolidation, choose a plan which you will be able to finish within the shortest time. Once the accounts are fully paid through the consolidation program, it will be removed from your file and your future lenders will get a clean view of your credit. It doesn't hurt if you are enrolled in the program. It will be reported in your file using some professional help.

Don't take a loan for clearing your past debts. That may not be good decision according to me. The loans require collateral and you will have to pay interests against the loan.

Consider paying the debts on your own at the first place. If you can't manage with it, discuss the matter with a debt counselor who will give more light on it. Compare your options keeping your credit in picture. If you start becoming delinquent in your bills now or in the future, your scores will go down.

I have to agree...the WORST thing you can do is take out a loan to pay off old debt because then you will not have the credit cards but still have the debt. If you file bankruptcy, it will kill your credit and if you work with a settlement company to cut the debt it will ruin your credit. you need to throw all your money into paying off these four cards as quickly as possible. But yes i would be talking to a counselor about your options.

Sterling84--Are you an undergrad or grad student? I ask because a grad school student loan usually will cover costs of your schooling plus extra for living expenses. Undergrad loans give a little over but not as much as grad student loans. I asked why and the reason was that traditionally grad students are a little older and more financial responsiblities (homes, families, etc.) I found this out last year.

The best way would be to try to consolidate. However, if you could not really afford that, then Settlement would be the best bet. Yep, it drops your credit score while in the program, but once it is complete you will still have that one credit card open that your allowed to keep. They suggest you use it often and pay it off fully each month to quickly rebuild your credit. I see no future problems with you trying to get a home after using a consolidation/settlement program.

Does consolidation freeze mt credit line, i.e. would that make it impossible for me to get any student financial aid? Lorri, I am entering the Surgical technologist program, it basically is specialized training with certification at the end. The program is full-time for 9 months.

During this 9 month period, you will not be able to use the accounts put in the consolidation. Basically, the idea of consolidation is to shrink the debt gradually and wipe it off at the end. If the accounts under the consolidation plan are kept active, the debt will keep increasing and you will never be able to come out of it. You need to live on a restricted budgeting as long as you are in the program. Once everything is paid off, you will have your accounts activated again.

I reached a settlement today, I used the Law office of George Zednek, . I will pay $292.00 for 35-45 months to rid myself of $23,000.00 As I mentioned above, I have never had so much as a single late payment in my life, and my credit score was 700 plus. I know this adversely effects my score, but I had no other option. I worked out a budget and realized I would be paying over $500 in minimum payments monthly, with going to school in the Fall I feel this really was my only option. Hopefully in the future when my wife and I are looking to buy a house, at least my payment history will show zero late payments. Just looking for a silver lining I guess. Either way I do feel like a thousand pound weight has been lifted off my shoulders. Thanks everyone for your comments and suggestions.

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