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payingitback · Posted: Fri Nov 16, 2007 1:57 pm

Hi, I finally looked at my credit report. Low 500's. But, I have a lot of different kinds of debt and I was hoping you could help me in figuring out what do to next in paying it off.

First, I have about $2,000 in collections for medical bills.
Second, I have about $6,000 in revolving debt, which I think are mostly credit cards that they have closed. I have one SEARS card which is most of this and is very past due, LVNV is on there too for this.
And, then I have my student loans which is a lot, but I'm OK with these.

Do you guys have any suggestions on what I should focus on first? Should I try to settle the SEARS account, since it's been a while and has KD marks on my report? Should I be trying to settle all of my closed credit cards?
Then what about the medical bills, should I contact those collection agencies directly and try to set up a payment plan? Do payment plans hurt your score?

Thanks for the adivce!!

Posted: Sat Nov 17, 2007 9:44 am

Your medical ones may be easier to set up payments than the others.

The way I did it was, I took my lowest debt, payed as much extra towards it as I could and got it paid off. I then took that payment, added it to my next lowest balances' payment and payed it off, etc. some try to pay the highest interest ones off first-I had to do it this wasy to see some progress.

There are also other options to consider-Debt Consolidation-it works for some, and may be an option for you.

I paid off my charged off cc accounts in full. As far as LVNV- forget about working with them or working out payments-they use ugly tactics-work with Sears directly if they haven't sold off the account.

Feel free to ask questions..karen Very Happy

Posted: Sat Nov 17, 2007 4:24 pm

My advcie....?.......work with one debt at a time. I know this may sound funny, but, if you try and think about ALL of this, together, it seems like it would be overwhelming!! Start with the 'smallest' debt you may have, make arrangements ( if you can), etc. get them paid, etc. And 'go from there.' I know, at times, it seems impossible. but, you'll be surprised how some people are willing to do to 'work with you', if they know you're trying to help yourself.

Posted: Sun Nov 18, 2007 5:13 am

Karen and SD describe a popular method of resolving debt that people on the internet call snow balling. Start with lowest amount,pay off,and proceed to next one.Wash,rinse,and repeat.I would add if any of these are with collection agencies to validate the debt first to make sure you are paying the right party. I would also start with the medical debts first if possible.

Posted: Sun Nov 18, 2007 8:10 am

Just for clarification for myself... doesn't medical hurt ur credit the least? Why would u suggest paying them first? I'm just curious...
Thanks ahead,
Ang

Posted: Sun Nov 18, 2007 8:22 am

I am curious too. I was always told for mortgages and such they diregarded medical debts when looking at the credit report.

Posted: Sun Nov 18, 2007 8:30 am

Yes my mom and step dad own an apt complex and i know there they check credit but medical are NOT an issue. They are just over looked all together but as i said i was just curious...
Thanks,
Ang

Posted: Sun Nov 18, 2007 8:53 am

Any collection hurts credit scores and most lenders ignore them now days. I feel medical first because most of the oc's are easier to work with compared to other types of bad debt. Just my free opinion of course.

Posted: Sun Nov 18, 2007 9:05 am

Well yea i guess ur totally right Cajun! I have heard that medical are MUCH easier to work with!!!
Thanks for the answer! And i appreciate ur free "good" advice! Very Happy

Ang

Posted: Sun Nov 18, 2007 9:34 am

Thanks Cajun.

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