I had a medical problem and couldn't work for 2 years and really hurt my outstanding credit history. I had a $5,000 Visa card debt and a $19,000 Mastercard debt. I got on a payment program on both cards, offered to me by the banks. I paid both down to below the limit. The $19k one re-activated my account and I have continued to pay it down to $17k. The $5k account, I missed a payment, was dropped from the program and it has now climbed with late fees and penalties to $7010. The bank offered to settle the whole debt by paying $5010 (70%) by Sept 15th. Last I checked my FICA was 575 or so.
Here is my question? Will I have a more difficult time getting my credit rating up if I do this 70% settlement by paying $5010 by the 15th or would it be better to do the following - pay roughly $3,500 asap and then pay the rest off over the next 4 months? My goal is to repair my credit in the shortest time possible. I have about $3,500 now and might be able to borrow $1510 more but it will hurt.
2006-08-30
20:24:01
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4 answers
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asked by
Brian Mack
1
in
Credit