You settled a debt instead of paying in full will stay on your credit report for as long as the individual accounts are reported, which is typically seven years from the date that the account was settled. Unlike with bankruptcy, there isn't a separate line on your credit report dedicated to debt settlement, so each account settled will be listed as a charge-off.

You won't be caught off guard and you won't feel guilty, because you'll be spending money that you've allocated for the occasion.

You settled a debt instead of paying in full will stay on your credit report for as long as the individual accounts are reported, which is typically seven years from the date that the account was settled. Unlike with bankruptcy, there isn't a separate line on your credit report dedicated to debt settlement, so each account settled will be listed as a charge-off.

You must be sure - and I mean absolutely positive - that you have the willpower to pay off those credit cards and not use them again.

When you default on a secured debt, the creditor takes the asset that backs up that debt. When you convert credit card debt to mortgage debt, you are securing that credit card debt with your home. That's a risky proposition.

Don't let the fact that you're spending time getting organized result in late fees on your credit card bills.

By definition, saving - for anything - requires us to not get things now so that we can get bigger ones later.