Anything that has you not paying your bills will hurt your credit and increase costs for credit later on. This includes not getting finance or paying a higher interest rate later on. I knew one person who declared bankruptcy and he could only get a 4 year old car with 18% interest rate. Regular rates were around 4-5%. If you do walk away make sure you do not want to own a house for many years, because it will be very hard to afford one later.
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