Using Army bonus to pay off debt?
Date: Tue, 02/24/2009 - 19:53
9000 to Wells Fargo
7000 to Redwood Credit union
2500 to american express
2000 to hsbc
1000 to wamu
(^^^ Credit Cards)
8000 to hsbc for a motorcycle credit card
around 1000 in overdrawn bank accounts
35k in student loans
I joined the Army (infantry baby!), and will have $10,000 of bonus money July 1st of this year.
Most of my accounts are in collections and when they ask how much I can pay I say $100 to settle and they pretty much laugh, ask me if I am joking and hang up.
Should I just stay in the military until my debt disappears? or should I pay the loans off?
I really want to buy a 4 plex in the enxt few years as loans for veterans are SWEEEEEEEEEEEET!
I am super savvy and can negotiate really well- any tips are much appreciated!
Hang in there
My son who is also in the service is thinking about using his bonus to do the same thing. However, it won't be enough to pay off everything. He is working with a financial advisor to get the debt validated first. The debt that is properly validated and that is actually owed and within SOL will be paid, but any othe/r debt that is beyond SOL or that there is no validation/verification on, will get removed from his credit reports. Make the companys' validate the debt first. I would talk to a lawyer/ or debt counselor as well and have them be the mediator between you and the companies, so that you won't have to deal directly with them. Sometimes when you bring in a third party (an attorney, or debt counselor ), they are usually more willing to work with you. It's been said that debt settlement is not always a good thing because the company can state on your credit report that you paid but that the acct was not paid in full...that is if you negotiated with them. If you have an attorney working with you, they maybe able to work out a settlement deal whereas the debt collectors have to put in writing that they will put on your credit report, paid in full, and no other negative remarks given, once the negotiated amt has been paid. There is also the possiblity of working with Credit Counselors as well to help. You can get assistance from sources in the military to help, and talking to a JAG is not a bad idea, because being in the service, you have certain rights under the Soldiers and Sailors Relief Act. Check it out on military.com., and a JAG could also advise you on your rights in general when it comes to Fair Debt Collection Practices Act. Just throwing out some suggestions. I have made some of the same to my son. I would put some of the money back that you save after paying your debts. I would wait until I was out of the service before I made anymore major purchases. You don't want anymore debt than what you have while you are in, because they do look at your financial situation while you are in the service, and if you take on more debt while you have attempted to pull yourself out of it, that doesn't look so good to the brass. Be careful.
you didn't have any trouble passing the credit check for the mil
you didn't have any trouble passing the credit check for the military? i was thinking about doing the same, but was worried about my credit being too bad.
