In the meantime?!

Hi ceratotheriumsapien

I guess you didn't get me in the other thread. If you want to work in a settlement plan (not consolidation), the bills have to be in default before the settlement companies start negotiating. 4 months is the minimum time stated by most settlement companies.

If you decide a consolidation program, you can begin that even if you are current with your payments. Of course, it can also be done if the bills are in delinquent shape.

Ssssoooo, if the default occurs, what are the basic damages to my credit, ect? And if I pay off the 'negotiated' settlement early, can I recoup any of my credit? Thanks!

Credit companies will mark the accounts as 'settled' in your credit report. The counselor can insist them to report something better in your file like "paid". The 'settled' remark is viewed negatively by most of the credit grantors. But if the accounts have been paid off in your file along with this status shown, the negatives might be overlooked depending upon your payment history at that time. Credit scores increase the most when the accounts are posted as paid. If you take less time in doing this, it will do good to your credit identity.

After I sell our house, I'll have about 25K to put toward my remaining debt, which should all but negate it; hopefully, the house will sell soon, if not, then I'll just have to ride out the 'negotiated' settlement until it does sell. I guess there's really no way around the credit issues other than just get it this settlement done quick. Maybe then I can rebuild my credit.

Keep your hopes alive. You will definitely get through. Keep in mind that you are making an important positive attempt. It matters.