In Too Deep?

[Anonymous]

Hi all,

This is my first post.  I've looked at many posts regarding this topic, but would like some feedback on my situation if possible.  Here's what's going on:  Through a recent divorce and hospitalization, I have defaulted on about 12 credit cards to the tune of about $75,000.  They have all been written off as bad debt and are all about 7 months old.  My scores range from 480 to 525.  I have a couple current accounts (car and a personal loan).  I would like to buy a house at some point.  My income is good.  I calculated it will take me between 3-4 years to negotiate all these assuming a 40% (average) settlement percentage with letters from the agencies/CC companies stating the accounts will show as "settled in full" or "settled for less than owed" with a zero balance.  None would agree to delete.  Should I pay these off in order to secure a mortgage 3-4 years from now?  Is this the best course of action?  Will it work?  Or, should I save the money and ride them all out for 7 years?  I don't like the idea of the latter, as I do owe the money, and I don't want to wait that long.

Does anyone have any comments/advise?

Thanks all!

McLovin

[Anonymous]

Welcome-

You need to look at all of your options:

Credit counseling, DMS, Debt settlement, BK

I would start with a financial advisor-  

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McLovin wrote:

Hi all,

This is my first post.  I've looked at many posts regarding this topic, but would like some feedback on my situation if possible.  Here's what's going on:  Through a recent divorce and hospitalization, I have defaulted on about 12 credit cards to the tune of about $75,000.  They have all been written off as bad debt and are all about 7 months old.  My scores range from 480 to 525.  I have a couple current accounts (car and a personal loan).  I would like to buy a house at some point.  My income is good.  I calculated it will take me between 3-4 years to negotiate all these assuming a 40% (average) settlement percentage with letters from the agencies/CC companies stating the accounts will show as "settled in full" or "settled for less than owed" with a zero balance.  None would agree to delete.  Should I pay these off in order to secure a mortgage 3-4 years from now?  Is this the best course of action?  Will it work?  Or, should I save the money and ride them all out for 7 years?  I don't like the idea of the latter, as I do owe the money, and I don't want to wait that long.

Does anyone have any comments/advise?

Thanks all!

McLovin

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[Anonymous]

" Or, should I save the money and ride them all out for 7 years?  I don't like the idea of the latter, as I do owe the money, and I don't want to wait that long. Or, should I save the money and ride them all out for 7 years?  I don't like the idea of the latter, as I do owe the money, and I don't want to wait that long."

A: Good attitude.

B: Risky. They very well may sue you.

Personally, I would call each cc (if you haven't already), explain the situation, and set up a payment plan that you can comfortably pay.