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Lfamily0413

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Bankruptcy or Credit Consolidation?
I am young and have a large family. I'm currently about 23,000.00 in debt with credit cards and student loans combined. My credit score is obviously garbage as a result. I can't make any payments yet as we're still trying to get above water for our basic survival needs. What's my best option? Bankruptcy? Credit Consolidation? HELP!

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Budgets

Without more detail on the income vs size of family or what you actually spend your money on this is a hard question to answer. But, your priority should be paying your higher rate loans off first (credit cards) and then cut them up. Prioritise your spending on quality food for the family and  home cooking, eat out less, no fast foods. Less money on 'the american dream', cars, TVs, Phones...i.e. 'bling'.

Bankrupcy is not a responsible answer and credit is about responsibility. If you want a good credit score just pay what you owe on time and things will improve as you pay down your credit card.

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Hope this helps

Considering your credit score is already shot, keep paying your bills until you CAN get money to pay off some debt. If your debts go to collections, just call the collection agencies to make a payment plans. If you get money back at tax time, slap that to your debts.

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Are Credit Consolidation companies bad?

I don't want to do bankruptcy but need to get my debt under control. Is credit consolidation bad? That lowers payments but is that worse for my credit? Right now my score is low because of the amount of debt but my pay ontime rate is high. Alos, how badly does a few late payments impact my score? I had 3 late payments recently but am back on track... is there a period of time with no late payments that will help my score improve?

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