As long as you have fall back resources I’d pay off the debt. I’ve lived debt free for many years. Now does that mean I don’t use my credit sources for transactions sometime, no. But I make sure I have the means to pay off the prior month or use 0% options for things like furniture etc. as long as your accounts aren’t charging you interest you aren’t wasting money. My 2 cents.Should I drain my savings to pay off debt or accept a debt consolidation loan and keep my savings?
Exactly why I said depends on their “resources” blanketing the many factors of consideration. It will help your credit score substantially paying off debt. However if your credit is not in good shape and you come into an emergency can you handle a situation which may unexpectedly occur if you drain your savings is the main question.too many factors and variables come into play,
- your income
- your assets
- your monthly bills
- own a house or rent
- children/dependents
- how much debt
- what type of debt
etc etc
Be cautious of these programs you pay a small monthly fee and they deposit into an account. Then they call to settle debts for less amounts. If they settle a $4000 hospital stay for example for $2000, They will take the 2000 to pay them and then 25% of what they saved you so it’s $500 withdrawn for your account for them “negotiating your debt”.I would recommend to apply to some professional consultation. I received excellent service from Dept Quest USA and their debt consolidation program. It was their professional knowledge and genuine attitude that help me to trust in knowing there is know noncent with this class A+ rating Debt Settlement Company. They get the job done.