Pay off credit card debt without consolidating
When you finish paying off credit cards with a consolidation loan, don’t be tempted to use the credit cards with their newly free credit limits. You may have heard that doing so could hurt your credit score, and it might.But you can recover from credit score damage much more easily and quickly than you can recover from crushing debt.
In reality, credit card debt forgiveness is rare and tricky, and can be very costly. Then you have to convince your creditors that you don’t have the means to repay your debt and your situation isn’t likely to change.Also, not all debts can be discharged in a bankruptcy. Collection accounts fall off your credit report after seven years.At that point, the delinquency stops affecting your credit. Your credit suffers tremendously in the meantime, and since you’re still legally obligated to pay the debt, a debt collector can pursue you until the statute of limitations runs out in the state where you live.Which strategy will ultimately be the best choice for you depends on your own circumstances, and we can’t tell you what to do.But the option we want to discuss here is paying off debt.