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