CC company, Settlement

Finding this blog so helpful!

Finding this blog so helpful and hoping some of you have some words of wisdom for our situation.

We (hubby and I) have a mountain of debt, life happened, anyway we are falling behind. We are in the process of getting a home line of equity and can pay all the credit cards off with this.

Here’s the question, the credit cards have started calling since we are a month behind on payments. They have mentioned settling for 80%, I’ve heard the longer you wait the lower the percentage forgiven gets. This would free up some money on the line of credit and make the monthly payment lower. When I mentioned this to the loan consultant she advised strongly against settling as it really messes up your credit score.

What do you guys think? Settle for less than owed, or pay back the whole amount and struggle for a while longer.