Buying a home and consolidating debt dating games for kids to play
At that point, the delinquency stops affecting your credit. Your credit suffers tremendously in the meantime, and since you’re still legally obligated to pay the debt, a debt collector can pursue you until the statute of limitations runs out in the state where you live.Which strategy will ultimately be the best choice for you depends on your own circumstances, and we can’t tell you what to do.But the option we want to discuss here is paying off debt.You may have heard that some creditors are willing to settle your debt for pennies on the dollar.While you’re in the program, you won’t be able to use your credit cards or open new ones.The plan is designed to get you out of debt in three to five years, after which all of your accounts should be reported as paid-as-agreed.It’s a great tool to see just how many years it takes to pay off debt, especially high interest credit card debt on which you make a small minimum monthly payment.
A great way to consolidate debt, especially if you have bad credit, is to enroll in a debt management program, which we’ll discuss in a moment.
Debt consolidation makes sense for people who want to make one payment each month instead of several, and for those who can lower the amount of interest they pay by taking the new loan.
You can figure out how long it will take to pay off your debt using a debt payoff calculator like this one from CNN Money.
Debt is costly and can prevent us from reaching financial goals (or at least prevent us from reaching them when we’d like to).
Some people consider credit card debt bad and mortgage or student loan debt good.