I have $900 in bad debt and no credit cards, should I pay them off or get secured credit?

Question

The debts are rediculous medical bills from my boyfriends fathers office, he told me it'd be free but I guess not. I also have 21k in student loans through the stafford loans which are being deferred. I have never been approved for credit cards and I'm wondering if I should get secured credit or have my parents add me as an authorized user on some credit cards.

Which steps should I take to help my credit report? How fast will my report change?

Unless you know what you're talking about, please don't respond. Keep in mind 21k in student loans is pretty good for a graduate student, so is only having 900 against me. Also, look up secured credit if you're unaware of how it works.

Answer 1

With those debts how can you even be thinking of getting a credit card??? Pay off the student loans and get rid of the other debt (no matter how unfair it is). It is unlikely you will get a loan anyway, secured or otherwise, with those debts.

Answer 2

Unless those debts are nearing the 7 yr age limit . realize that they will hang with you a longggg time , and all loans made to you will be at maximum %. You will be paying stuff off until you are 50.
With all that debt you should NOT get cards or incur any more debt as you are already tanking your life.
Ask your parents if you can move back in for maybe 6 months while you work 2 jobs and pay 75% of your check to the loans . Give your parents 15% and use the other 10% for fuel and laundry until the debts are cleared.
OR get a credit card and finish your $$ suicide run .

Answer 3

If you pay off all your bad debt, your credit will be good in a few months to a year. Once you have everything 'paid as agreed' or at least paid off you'll start getting regular credit card offers. If your student loans are from the government and not a bank, they are willing to make just about any payment plan (if you need it when your deferrment is up) as long as you say you plan to pay it back someday. Even the banks are kinda friendly about student loans.

I wouldn't borrow from the parents unless absolutely necessary, and wouldn't go thru the hassle of a secured card. (Why give them money to loan back to you? Keep the cash!) If you have enough in the bank to pay off the $900, do it and wait till your credit gets better. If that blows all your money, your parents will help you out if your car needs new tires or something--wait until you need it before you borrow it. Deal in cash and debit cards until then. Your credit score will probably recover almost as fast without secured credit as it would with it.

Answer 4

A sound debt management is paying off your lesser bills first. This is done by making the repayments on your higher bills and make minimal required payments. On your least bill add a bit more until it is paid off and then move all that up to the next bill. Eventually you will have the debts under control and might be in a position to get a small consolidation loan freeing up more funds that you can save. The student loan sounds fine to me so minimal payments there would be ok.

Answer 5

Do not get involved in your Parent's credit cards - that's a NO, No.
Make an arrangement with your Boy Friend's Dad - tell the Dad that his son told you that it would be free and the Dad will give you a break in some way. Lay it on thick with the Dad and don't discuss any of it with your BF.