By STEVE BUCCI, bankrate.com

Debtadviser: Mortgage modification may affect credit

Dear Debt Adviser,

I have a question in regard to debt. My wife and I are currently in the process of modifying our mortgage. However, as soon as we started the modification process, our credit card limit was reduced significantly. Will a mortgage modification affect our credit? If so, for how many years?

-- Jes

Dear Jes,

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Debtadviser: Three truths about debt settlement

Dear Debt Adviser,

I take home $9,000 per month, but pay $2,500 to my credit cards. I can't continue to pay my credit-card bills. I am thinking I might stop paying and try to settle. Will it hurt me that I have gainful employment?

-- Dan

Dear Dan,

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Debtadviser: Pay debt off to keep your credit good

Dear Debt Adviser,

If collection agencies are calling me and I settle with them on an agreed price and terms, can the original party that I owed the debt to come after me? Or once settled, is that debt no longer "alive"?

-- Harvey

Dear Harvey,

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Debtadviser: Check credit report before refinancing

Dear Debt Adviser,

Currently we owe $211,000 on our home and it is worth about $167,000 to $175,000. We have an interest-only loan and want to get out from under that before a higher interest rate and inflation hit. We have a credit score in the high 600s. Any thoughts?

-- Walt

Dear Walt,

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