New Member
Posts: 5
Registered: ‎02-23-2010
Divorce and Debt Settlement

After getting divorced in March at 38 years old, and having $42,500 of debt that needs to be settled given that I can't even make the minimums each month, I would like to know how much worse my FICO is going to get and for how long. Equifax was a 632 in march and is now a 574 Trans is 632 was 687.

I have a decent job ($50,000) but have three children to support and have been considering cashing in my retirement to pay off my debts, rather than debt settlement. To do this, I would have to quit my job and relocate to another state to work since I am paying into a private retirement system. Has anyone made this kind of choice and if so, was it wise or unwise? Should I take the risk of quitting a decent job and starting over elsewhere to get out of debt or should I just do debt settlement and have no effect on my retirement.

Starting Score:632
Current Score: 632
Goal Score: 700

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