I need help with my current financial situation please...?
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Hello everyone, I hope all is well and everyone enjoyed their Thanksgiving with their friends and families. I am running out of options in terms of trying to get an unsecured loan for $50,000 to cover all of my unsecured debt. I am seriously debating whether or not I should join a dmp. I have a good credit score (between 700 and 720 from the 3), I have never been late on anything in my life, and I have a 76,000 annual income. My problem is I had a recent tragedy in my home, it caught on fire and my insurance didnt cover the interier. I had just purchased the home and 2 days after closing the fire occured. I have now managed to get right around $45,000 in debt from credit cards and personal loans. I am afriad to join a DMP because I care a lot about my fico score. Also, what happens to the credit cards that I have? Do they cancel them so I cannot use them? I wouldnt want that to happen, I would at least like to keep one of my cards with a $0 balance open in case of emergencies.
I need help with my current financial situation please...?You won't be able to open any new lines of credit, and I'm sure that they will freeze your current accounts so that you can't use them. I think it depends how long it will take you to pay off the debt. A temporary hit on your credit score is probably better than bankruptcy or defaulting on your mortgage, which are just about the worst things you can do and would take 10 years to correct. Also beware of lumping this debt into a Home Equity loan, if you do you will have to count on staying in that home for a very long time until the value goes up or until you pay it down. I did this 2 years ago, and I'm kicking myself for it. I wish I had done a debt management program instead.
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