My debt to income ratio is enormous. I pay bills on time, but do not have money left over for groceries much less anything else. I need to refinance my home because my ARM is up soon.
Would it be smarter to refinance now before I mess up my credit worse with a dept mgmt. program? I don’t know if my credit is ruined worse by a debt settlement or by my debt to income ratio. Please help.
No matter what the cause of your decreased credit score, the end result is the same thing, poor credit.
With a ARM needing to be refinanced in the near future you better make a serious effort to get your credit in shape.
First step will be to get a copy of your consolidated credit report and look to see what is really being reported about you. If you find negative and inaccurate information being reported, follow the instructions included in the consolidated credit report to get it removed.
With the stricter lending standards for mortgage today you might find it difficult to refinance with borderline credit. Once you tune up your credit report then I would contact a mortgage broker and talk about your refinancing options.
I don’t see any reason why you should be considering a debt management program at this time.