Ratio
Date: Mon, 04/27/2009 - 05:24
I have great payment history; however, a large amount of debt, which drags my fico scores down. I do not have the funds to pay down large amounts to debt as of now, but can maintain my good payment history. Any suggestions?
Since "amounts owed" factor contributes about 30% in your FICO s
Since "amounts owed" factor contributes about 30% in your FICO score, your credit score has come down. You need to stop using your cards right now and negotiate with your creditor for a repayment plan to pay off your debts.
Avoid settlement offers that lower the balance as that will hurt
Avoid settlement offers that lower the balance as that will hurt your score. Negotiate better interest or transfer the balances to lower interest cards. If there smaller balances, pay them off first and apply that to the next larger one and so on up the ladder. You will be surprised to see how much things will improve quickly!
