Debt Settlement.
Date: Wed, 09/30/2009 - 00:34
Hi Guys.
I have a sizable (90,000) debt on credit cards, due to a business that failed, that I think the only way out of is to do a debt settlement. Currently all payments are made, none are late, but I can not tread water any longer because all my savings are now gone as well. My home is for sale so I can leave this community (staying here is not an option, there's no work) but I am afraid if I do the debt settlement, I will not be able to get a mortgage on another house. (But if I keep all that debt, I may not be able to get one, either.) I am between a rock and a hard place. I will be moving to another state, and my house could sell at any time, or it could take another year. Just how bad does a debt settlement harm your credit?
I hope you will answer me.
Thanks.
I have a sizable (90,000) debt on credit cards, due to a business that failed, that I think the only way out of is to do a debt settlement. Currently all payments are made, none are late, but I can not tread water any longer because all my savings are now gone as well. My home is for sale so I can leave this community (staying here is not an option, there's no work) but I am afraid if I do the debt settlement, I will not be able to get a mortgage on another house. (But if I keep all that debt, I may not be able to get one, either.) I am between a rock and a hard place. I will be moving to another state, and my house could sell at any time, or it could take another year. Just how bad does a debt settlement harm your credit?
I hope you will answer me.
Thanks.
As a general rule, creditors will not settle your accounts unles
As a general rule, creditors will not settle your accounts unless you are past due. So right there you are looking at negatives. The process of settling your debts will tank your scores since you are not paying as agreed.
Yes, the only way to keep your scores up right now is to keep pa
Yes, the only way to keep your scores up right now is to keep paying your bills. But as you said, with a very high debt to income and high balances on your cards, you will not likely get a loan anyway. But settlement will not magically get rid of all your debt without affecting your credit for a few years. You may need to rent for awhile and focus on getting your finances in order.
