Settlement Or Consolidation?


I am in debt under $10,000 with unpaid medical and utility bills (not to mention my student loans.) I had a Chapter 7 bankruptcy discharge clear last April and since losing my job six months ago I\'m falling down the same hole all over again. Should I consolidate or settle? Or should I get a loan co-signed making me the primary party, use that to pay everything off and then just make one payment on the loan monthly? Thanks for your time, I appreciate it.

4 Answers

Thanks to everyone who replied, I appreciate it. I didn't realize I couldn't do debt settlement with less than $10,000 debt. I may be able to get a loan with a co-signer, which I think would be the best course of action. Can anyone recommend a reputable Debt Consolidation firm? I've done my homework, but it is all still so daunting, everyone of them seems to be a scam in some form or another. Any leads here would be greatly appreciated. Thanks in advance.

You will not be able to qualify for debt settlement as your debt amount is less than $10,000. You may consolidate all your unsecured bills into a single monthly payment. You can approach a debt consolidation company in this regard. 

as far as debt consolidation loan is concerned, it will be difficult for you to get a loan without any income. If your score is bad, then the financial institutions will not be interested to lend money. If you can pledge collateral, then they may agree to lend money. You may also ask your friend to become a co-signer for your loan. This may help you secure a consolidation loan.



Yes, getting a debt consolidation loan would be difficult with poor credit conditions and therefore debt settlement will be certainly be a good option for you. If you settle your debts, the principal amount will be reduced and you can expedite the debt repayment procedure. Though this may also have a bad impact on your credit score, yet you can take all the steps that are needed to repair your credit score and emerge creditworthy in the long run.

I guess presently you have a bad credit situation and your financial situation is not good. In such a situation, it will be difficult for you to qualify for any kind of consolidation loan. You will have to go for either debt consolidation program or debt settlement in order to get rid of the debts. In my opinion debt settlement will be a good option for you as your debts will be reduced to a certain extent and it will make it easier for you to pay off the debts.

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