OK, I have 40,000. in credit card debt, a year in a half ago I got assaulted and have been thru 9 surgeries with at least 3 to go. I’m a single male and have raised my 2 kids ages 17, 21 on my own.
I’ve made it through a divorce and the operations still maintaining my credit which is at 740. I’m a contractor and business is really slow now. I owe about 68,000 on my house now. I have 7,000 in cash with these other operations to go. I hate to loose my credit I’ve fought for a long time to keep. The only thing wife took 11yrs ago when she left was the mustang leaving the kids and all the debt.
But anyway I’m like if I pay my credit 7000 will be gone in 2 months if I walk on my credit I can make this money last all year.
So should I walk on my credit, and let a credit advisory company, slash the amount I owe and pay that if i can or should I risk the $7,000 and try to keep my credit and hope buisness gets better?
By the way the guy that assaulted me got 2 years in prison but I feel like im in prison with these credit cards.
P.S. how long will it take me to rebuild my cedit once the debt is paid back”
Wow, I’m sorry that you had to live through all of this. I can only imagine how tough it must have been to be attacked and still have to care for your kids. It must have been and is quite a struggle.
I think all you can do is all you can do. If you need the $7,000 for surgeries then you should hold on to it. But I doubt that a debt settlement company is going to be able to achieve a satisfactory outcome for you based on your $7,000 cash-in-hand and the $40,000 debt that you owe.
I probably need more information to give you a ballpark answer but there are several things you need to consider.
- If or when you have the additional surgeries will you need the $7,000 to get by?
- Is there a likelihood that business is going to increase?
- Are you pursuing the attacker with a civil suit to recover damages from the attack?
I don’t think that you should try to hold on to a “good” credit rating. If you make that your end goal you will simply spend the money but not be able to take care of yourself.
Credit can be rebuilt and it typically takes a year if you execute an organized plan to do that.
Based on the information you gave me I think it makes better life sense for you to hold on to the $7,000 if you are going to have the surgeries within the next six months. You could stop making any payments to the credit card companies and it will trash your credit and you will wind up in collections but you will be able to care for yourself.
Depending on how fast you and the economy heal, business might be coming back and you can use your new income to start to repay the debts. If things don’t improve then you might have to look at bankruptcy at that point. But at least you will have made it through the three remaining surgeries.
Does that make sense?