Re: Best way to reduce debt?
02-06-2011 01:10 PM
I just got divorced. Marital home was just sold. I got nothing from the proceeds in the agreement. No delinquencies, no dings on my credit but rather high debt to earnings ratio -- carrying around 30K in revolving debt. I assume once my discharged mortgage hits my credit report my score should significantly improve as that and a home equity loan which was also paid off with the proceeds from the sale will be cleared. So what's my best strategy moving forward to clear my remaining debt? I'm hoping my score will mprove enough to get a good 0% transfer to another card for 12-18 months, a time frrame I believe I can discharge my remaining debt in? If I don't qualify should I take a loan against my 401K or try and get a lower % rate personal loan (I am renting so am no longer a home owner)?
The first thing to do is make sure you do not have any accounts with your ex. If you do make sure you close them immediately.
For suggestions on what may be best to clean up your debt you would need to offer more information.
What type of accounts? (car loan, student loan, credit cards, personal loan, etc etc)
What are the interest rates?
What are the balances?
What are the credit limits on credit cards?
Do you have any negative reporting? (lates, charge-offs, collections, judgements, liens, etc etc)
May all your dreams and wishes become a reality!