Should I go for a settlement

Submitted by Anonymous (not verified) on Mon, 05/17/2010 - 04:38
Forums

I have approximately 20k in credit card debt broken up with BOA(12k), Amex(6k), and Citi(2k). I am selling my car in order to pay off that loan and have some money, and I have some other owed money coming, so my total cash on hand will be 20k. I have my housing provided for me as well as food. However I am unemployed, and I recently became a full-time student in order to provide better employment opportunities in the future. I had a score of like 810 and never missed a payment, but with my debt ratio around 80% its at 720 now, and is declining steadily.

Since I am about to have some cash on hand, should I aim to get a settlement?

Hi Paul,

Yes, you can try to negotiate a debt settlement. However, debt settlement will hurt your credit. Thus, you can try consolidating the debts. Debt consolidation lowers the rate of interest on the debts.

Thanks,

Aaron

Mon, 05/17/2010 - 08:11 Permalink