I have been unemployed for the last 6 months and finally got a job. I was trying to see if there is a way to consolidate my debt so i won't have to pay so much. now I'm a 19year old college student who goes off to college at the end of every august. What should i do to relief myself of debt.
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Mon, Jun 8, 2009
June 8th, 2009 at 7:12 pm
Pay off your debts. Live within your means. Make a budget and cut your extra expenses.
June 8th, 2009 at 7:12 pm
pay it off and quit using the card. Pay for stuff with cash or your debit card.
June 8th, 2009 at 7:12 pm
how high is your interest rate? thats the key. If you its 10% or less just make your payment till your better off. If not then you need to consider paying it off or transferring to another card. Just dont be late on your payments, it takes months to fix bad credit.
June 8th, 2009 at 7:12 pm
If this debt went unpaid for six months, then it was almost certainly charged-off as bad debt. You need to understand that when a credit card has been charged-off that the damage is already done and paying it back in full after the point of charge-off won't magically restore your credit. The charge-off will stay for 7 years….paid or unpaid.
Two options:
- Just do nothing if they are not harassing you for the debt. Sit tight and let the charge-off fall off your credit report naturally in 7 years. The main damage of the charge-off to your credit should be over in 2-3 years.
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Make a settlement to pay it off:
If you're going to pay off old-charged-off debt anyway, then you might as well negotiate the lowest, rock bottom settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report, regardless of whether the charge-off is paid or unpaid. …Offer 25%
- Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. This letter should state the settlement amount and that the account will be “paid in full” upon receipt of this amount from you.
- NEVER give out your checking account/bank routing numbers to debt collectors for making electronic debit payments.
June 8th, 2009 at 7:12 pm
A credit card not paid for 6 months is NOT written off by collectors or card companies. That is bad advice. You will need to pay, and the sooner the better. Here are some tips…
http://www.associatedcontent.com/article/1788858/sneaky_ways_to_pay_off_credit_card.html?cat=3
June 8th, 2009 at 7:12 pm
Don't consolidate your debts – that just means borrowing even more money that you haven't got and making things worse. You have a legitimate debt, so concentrate on paying it off. It certainly will not have been written off.
The good thing about credit card debt is that you have the option of transferring it to a 0% balance transfer deal, so that you have an interest free period. Assuming you can get one of these cards.
Transfer to the card with the longest 0% balance transfer offer (doesn't matter about the interest rate for spending, because you aren't going to do any). Put the card away and never ever use it to spend on. Cancel and cut up any old credit cards you have.
Pay off the balance of what you owe as quickly as possible. Set up a direct debit for the most you can afford each month, so you never miss a payment. If you can't do it within the 0% period, see if you can transfer to a new special offer card just before the offer runs out.