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A little new to this kind of situation.

Date: Mon, 11/22/2010 - 14:43
Submitted by Brasen Domingue on Mon, 11/22/2010 - 14:43
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Okay. I have no idea what to do in these situations, and I may even be overreacting when I say I'm kind of freaking out about this situation. After signing up with freecreditreport.com, I find that my Credit Score is at 544 as of 11/22/2010. According to my credit report, I have 2 accounts in debt: 1. Verizon Wireless at a total of $262.00, which I knew about, as VZWireless screwed me over by not waiving my contract cancellation fee like they said they would, and 2. BUREAU OF COLLECTION R at a total of $279.00, which I'm pretty sure is what when Verizon Wireless turned it over to their debt collection team. Both accounts are marked as "Potentially Negative Closed" and the accounts are marked as "Closed."

My questions are:
1. What are my options for removing the debt from my credit?
2. Is a consolidation lender a valid option, or is the debt too high/low for that to be helpful?
3. Am I able to make monthly payments to pay off debt if it is necessary? If so, will it effect my credit in a negative manner?
4. Is it better to pay the debt back all at once after saving for a month or 2?
5. Should I present my debt to a debt consolidator, or is my issue small enough to handle on my own?
6. How do I go about raising my credit score further AFTER my debt is taken care of?

Thanks in advance for any help anyone can provide. If there's anything else you can tell me, or any tips that would be helpful, that would be much appreciated. Once I found out I was in this debt, my leg has started spazzing out, and hasn't stopped since. T.T


Hi!
Welcome to the forums!
Before answering your questions, please let me know what is your gross monthly income. If you earn a moderate income, then I think it will be better to negotiate with the companies for an alternative repayment plan. If they are not interested or you are not able to reach an agreement with them, then you can take professional help. You may either enroll in a debt consolidation program or a debt consolidation loan. Your credit score will not drop further for that.

The interest rates of the debt consolidation loan is much lower than that of the credit cards. So, I don't think you'll face problem in making monthly payments. If you enroll in a consolidation program, then i would suggest you to get help from such company that charge lowest fees. However, it is always better to pay off the loan on your own. Thereby you can save the money otherwise would have gone towards the payment of fees.

Your credit score is bad but it can be improved gradually. Don't expect it become 600 or so overnight. It will take time. You can get information about how to improve your credit from the following page:

http://www.debtconsolidationcare.com/repair-credit.html


Submitted by Good Nelly on Thu, 11/25/2010 - 02:10

Good Nelly

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Answer the question asked by Good Nelly. Always remember that it is always better to go about the process on your own. You will save a lot of dollars by doing this.

After you have paid off these accounts, make sure that you are on time with the future payments. That will gradually help you to increase your score.


Submitted by paulcahill80 on Thu, 11/25/2010 - 12:36

paulcahill80

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