Paying off debt that is hurting credit
Date: Wed, 12/13/2006 - 09:36
I have approximately 5000 dollars worth of mostly consumer debt most of which has been brought to one collection agency or another.
I have decided the best action for me is to pay this debt off as I desire to be able to by my own condo within approximately the next year or so. I figure a bank will look more favorably on me if I make an effort to pay this debt off rather then filing bankruptcy.
Since I have bad credit due to these collections, I have a hard time getting a loan to consolidate and I have no one that will co-sign on a loan with me. However, I can not pay off my debts directly to each individual agency because I will be left with no money to survive on
What options are best for me?
I have decided the best action for me is to pay this debt off as I desire to be able to by my own condo within approximately the next year or so. I figure a bank will look more favorably on me if I make an effort to pay this debt off rather then filing bankruptcy.
Since I have bad credit due to these collections, I have a hard time getting a loan to consolidate and I have no one that will co-sign on a loan with me. However, I can not pay off my debts directly to each individual agency because I will be left with no money to survive on
What options are best for me?
Consolidation will be good in your situation. You will get l
Consolidation will be good in your situation.
You will get lower interest rates and everything combined under one plan. The program will stay in your credit as long as you are using it. It does not hurt negatively because you will be making the payments on your accounts.
Since you are finding it tough to pay the debts because of high interest rates, this program will be a good alternative. However, you may call your creditor and talk to them about your situation and see if they are willing to do any arrangements with you. If that doesn't work, talk to a debt counselor. This site has free counseling.
