My husband and I have a large amount of credit car

My husband and I have a large amount of credit card debt. Approximately, $60,000.00. We have carried this balance for about 6 years now. We make the minimum payments every month and put extra toward the debt here and there. All in all, the interest rates are so high we are not getting anywhere. We have asked repeatedly for lowered interest rates, but have never been successful. We both have pretty good credit scores - 730 & 750. We currently own our home and are looking to sell and buy again in the next few years. We really need to make headway with our debt, but need help doing it. What is a debt consolidation company going to do to our credit? How will this effect a lendor's view of our credit when we try to apply for a loan down the road?

4 Answers

Enrolling in a consolidation program and/or settling the accounts on your own will tank your credit score as you will need to stop making payments as agreed.

 

I suggest you either settle the accounts yourself or file bankruptcy.  Either way, your score's going to go down the drain but you'll be starting with a clean slate and should be able to qualify for a home loan in about 2 years.

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Yes, and if you miss the payments on the debt consolidation program, the entire program may get cancelled and you can trash your credit score. So manage your payments so that you can pay on time.


Good to know that you have a fantastic credit score. Your debt amount is quite high. I would advise you to enroll into a debt consolidation program instead of taking out a loan. Most lenders will not agree to lend you such a huge amount without any security. Once you enroll into the debt consolidation program, the consolidators will negotiate with your creditors to reduce the interest rates.  


You can go for the option of debt consolidation in order to get rid of your credit card debts. A debt consolidation may not directly affect your credit scores but if you're late or delinquent on your payments, then your scores will get lowered. You will be consolidating your debts and paying them off. When you're in the consolidation program, it's better to not apply for a loan. After you finish off paying your credit card debts, you can very well apply for a mortgage. I don't think debt consolidation will hamper your chances of qualifying for a loan.


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