What do you want to pay off first when trying to clean credit report and get out of debt?
by admin ~ June 26th, 2007 . Filed under: Personal Finance .
Flyerfan asked:
If you have about 9 accounts, about 3 of them are credit cards, and miscellaneous debts, like unpaid portions of car insurance premiums that were canceled ? In other words, out of all the types of debts, what kind of debts might you want to pay off first?
Azalee Oursler
If you have about 9 accounts, about 3 of them are credit cards, and miscellaneous debts, like unpaid portions of car insurance premiums that were canceled ? In other words, out of all the types of debts, what kind of debts might you want to pay off first?
Azalee Oursler
June 26th, 2007 at 4:12 pm
Pay off al unsecured debt first. Start with the highest intrest rates.
June 27th, 2007 at 2:22 pm
The ones that have the highest interest.
June 29th, 2007 at 7:20 pm
I would pay off the credit card bills with the highest interest first, then work your way down according to which account is charging the most in interest.
June 30th, 2007 at 11:18 am
I would make a payment plan that included all debts and pay off the smallest balance first. I prefer this method over the highest interest rate method because you can compound payments on each other quicker and you will see things getting paid off quicker (helping the mental game)
July 2nd, 2007 at 5:45 am
You want to pay your assts first, ie car, house, etc. Then if you still have the credit cards open, call them and tell them to increase your limit. Creditors look at your credit report ratios. for example a $200 charge on a card that has a limit of $201 is 10 times worse than $2000 on a card with a $5000 balance(less than 50%). Call all of your companies and find out if they will do a payout price (a price less than the amount due with no penaltys) or a new card with 0% transfer balance and a high limit. Next start making at least the monthly minimum payments to put it on record that you are paying them. Call all of your creditors and see what they can do to help you. they realize that they won’t get paid the full amount sometimes but if you work with them they will at least get something
July 3rd, 2007 at 7:06 pm
Try to pay off all yuor high interest loans or credit cards. If your high interest ones have alot on them and you have some smaller ones you can pay off in one or two months, get those out of the way. Try to pay something on everything though, even if it is only 5 bucks a month. the credit agencies look at payment schedules also, they don’t care, really , if you pay them off, they want to see a monthly payment being made. If you have any closed or cancelled accounts, try and get those first because those are the ones that will be sent to a collections agency first.
July 4th, 2007 at 7:34 am
In addition to all the great answers that you got, be sure to contact these creditors and ask them if they could accept payment for deletion of negative history…..
Also
another thing to consider is your state laws
what is the statute of limitations in your state
some of these debts will fall off on their own but if you make a payment of even ONE BUCK you will reaffirm these debts….
if you dont do anything, they will fall off over time.
SO be sure you are not screwing yourself even more….
So in addition to the great answers above,
I would also factor in the age of the debt.
If you live in Kentucky were the SOL is 15 years then it is not really an option but in delware where the SOL is 3 years, it is worth a thought to consider avoiding it all together and ******* it up for three years.
July 6th, 2007 at 3:43 pm
If you haven’t been late on your accounts, you may be able to call the creditors and ask for an interest rate deduction. Then I would pay the highest interest ones first.
July 9th, 2007 at 11:55 pm
I have a pamphlet called “One For the Money- Guide to Family Finance”. It is very very good. It’s a short 11 pages on debt elimination. It includes a Debt Elimination Calendar to show you how to get out of debt in the shortest amount of time. You can find this pamphlet online, but here’s an excerpt from it that will give you an idea on how to get started:
“A debt elimination calendar can help you reduce or eliminate unnecessary debt. Mark off several columns on a piece of paper. In the first column on the left, write the names of the months, beginning with the upcoming month. At the top of the next column, write the name of the creditor you want to pay off first. It may be the debt with the highest interest rate, or the earliest pay-off date. List the monthly payment for that credito until the loan is repaid. At the top of the next column, record th name of the second creditor you want to repay and list payments due each month. After you have repaid the first creditor, add the amount of that monthly payment to your payment to the second creditor. Continue the process until all loans are repaid.”
I tried to show the debt Elimination Calendar that they show in the pamphlet, but it wouldn’t show up right on here. But, like I said, you can find the pamphlet online. Just do a Search for “One For The Money Guide to Family Finance”.
I hope that all made sense. This is the main idea of the pamphlet, although it goes on to give you other ideas of how to stay out of debt. It’s a really great plan, and I’ve seen it work, if you are willing to stick to it. I wish you luck!
July 11th, 2007 at 5:54 pm
Hi,
I used “Credit Solution” to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News special edition.Check it out here: