I have an outstanding student loan.. I have never paid on it due to the fact I went to Prison while I was attending School and never got an education out of it. Not to mention alot of medical bills also.. Every thing is now at collection agencies.. And you know them -- Gimie your money now -- I want to know what would be my best way to Clean up 20,000 dollars worth of dept?? I got no credit cards or bank account and barly survive paycheck to paycheck. Help
2006-10-05 12:02:26 · 6 answers · asked by dogowner 2 in Business & Finance ➔ Credit
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2006-10-05 12:19:52 · answer #1 · answered by supercreditguru 3 · 1⤊ 0⤋
You should try to settle with the creditors. If you owe $20K, see how much each of them will allow you to pay in order to satisfy the debt. If you owe $1,000 to a bank, for instance, ask the collector if they'd be willing to accept $500 to satisfy the debt. They may even be willing to take monthly payments form you. Be sure to get everything in writing, particularly a letter stating that you've satisfied the debt, once you've paid the agreed upon amount.
After you've paid off the bad debt, you'll need to pay all current bills on time for the rest of your life. Eventually, the positive credit history begins to replace the negative...but it takes a while.
You could try for a secured credit card (one in which you give them money in advance), which can help you to re-establish credit.
2006-10-05 12:09:28 · answer #2 · answered by Cool-K 3 · 0⤊ 0⤋
It seems like student loans never go away. I would contact the collecton agency and try to make payment arrangements if you can. dont your bills because they will come back to bite you in the you know what,just do what you can paying something is better than nothing. at the same time it is against the law for them to harass you. if they are bugging you send them a "drop dead letter" go to the website clarkhoward.com he may give you some good tips on how to deal with creditors. good luck to you!
2006-10-05 12:12:56 · answer #3 · answered by Dolly J 3 · 0⤊ 0⤋
I would first start with writing a well thought out not biased letter to your debters. If they know what is going on they will be more apt to work with you. Ask to make payments lower and if you do this make sure to honor your letter by making the smaller payments until you get a better job or a raise. Any time you get extra money send it to them as in good faith and your credit will eventually get better just make sure to make the payments you lined out in the letter.
2006-10-05 12:11:47 · answer #4 · answered by Larry A 2 · 0⤊ 0⤋
work hard and cut down unnecessary cost.quick fix rob the bank -----just joking.remember never get a new credit to fix the old credit . at the end of the day u will only end up with biggest dept.save as much as you can.
2006-10-06 00:39:28 · answer #5 · answered by apple 1 · 0⤊ 0⤋
contact the citizens advice bureux if you live in uk! If not try to contact the crisis ppl helpline, there should be one for every continent.
Look on google for how to budget, save, and debt management.
Good luck.
2006-10-05 12:20:23 · answer #6 · answered by j 1 · 0⤊ 0⤋