Suze orman and consolidating debt
But once a delinquency has been reported to a collection agency, paying it off won't help your FICO score.The damage has already been done, and the blemish will remain on your credit report for seven years.
Unsurprisingly, being a numbers junkie, I had to start doing some calculations.
The move will give you a better grip on tomorrow by reducing your costs today.
Assuming that renting will free up some money, I want you to open two accounts that will help you establish peace of mind: an emergency cash fund and a Roth IRA.
One important caveat: When you negotiate a lower payment, the IRS usually counts the forgiven amount (what you're not required to pay) as income, which means that you'll owe taxes on that money.
Q: I've got ,000 in credit card debt, ,000 in student loans, a car payment and an interest-only, variable-rate home loan that will adjust in two and a half years. How will I ever be able to save for today, for retirement, for my sons' futures? A: Your overriding goal must be to stay current on all your monthly debt.