Creit Card settlement

If you are trying to save your credit, forget settlement or BK or even consolidation. Before worrying about your credit, selling that house may be more difficult than you think and take much longer. If you do sell for what you need, what is wrong with renting? You can rent some pretty nice homes right now at good prices. FICO score is one the most overrated and brainwashed concepts that the banks and credit card companies have pushed on the general public. You don't NEED a good credit score to get where you need to get, however, you do need to get out of debt! A good FICO just means that you are very good at borrowing money. People who borrow a lot of money...do not become wealthy. Sorry for the rant but the FICO score thing really bothers me!

Nesarob,

Qualifying for another home purchase with the risk aversion that has returned to the lending market means you will have to have a Debt to Income (DTI) that proves you can manage the mortgage payment you would have. How likely is that based on your income with all the CC debt you have?

I have seen settlement program graduates qualifying for FHA home purchase funding within 12 months of zero balance reporting of settled credit card debt on their credit reports.

I am with mn. Get out of debt first.

Mileage may vary

My house has been on the market for over two years. I thought if I could sell, I could pay off a lot of my debt. No such luck, when the economy is in the crapper; I'm going through a settlement program also in the meantime, because I want to get out of debt ASAP and that's my most crucial priority. I'll worry about the rest of it when the time comes.

Thank you for the response! I total agree about the FICO scores. The way things are looking is we can be out of debt in a year. Sooner if I try for some credit card settlements. So I question what is better. Take the year and save the score or go try settlements and get out of debt first?

Personally, I think that if you can get out of debt in a year without harming your FICO and without having to settle, etc., I'd go that route. Because even if you settle, you would have to be a lot later than 30 days late on payments before the creditors would consider it. If you have five cards total, it could well take a year anyway. So go for the way that would get you out of debt with as little harm as possible.

i agree if you can get out of debt within a year without it, that would be what i would do like susie stated i didnt get my first settlement till about month 9 and it will trash your credit temporarily. dont do it unless it is abosolutely necessary.