Debt help?

Question

I am 27 and am in debt to the tune of 5000 dollars. I really want to fix my credit and get myself on track but I have no idea where to start. I want to raise my credit score it is at 536 right now. Does anyone know how to do this in less than a year?

Answer 1

It's really hard to say without knowing what type of debt you are talking about. And whether you just owe and are having trouble repaying or if the account(s) have been charged off and you are dealing with a collection agency.

If the accounts are still with the original creditor and you are having problems paying - find ways to cut back on your spending.
If you have cable - get rid of it.
If you eat out a lot - cook your own (low budget) meals
Make your own coffee
If you have your newspaper delivered, stop the service. If you "need" the paper for work etc, purchase the paper from a convenience store - you pay extra for home delivery.
If you carry long distance on your phone bill, but you rarely make long distance calls - cancel the long distance and purchase a calling card for those times when you do call long distance.

There are "many" ways to cut back. It may be hard at first, but after awhile it almost becomes second nature.

Pay on time and pay more then the minimum payment.


If the account(s) have been charged off and are with a collection agency, you are still within the collecting SOL for you state, and you want to pay - send the collection agency a debt validation letter (send everything to them certified mail return receipt)

Order your credit reports and look for "any" inaccurate information. If there is any, dispute it.

Once the collection agency properly validates the debt, send them a pay for delete letter.
Request that they delete upon payment and that they agree to take a portion of the debt as payment in full.

Be sure to have their agreement in writing or you may find the same collection agency, or another, trying to collect on the amount that was forgiven.

You might click on my profile and do some reading in the links I have listed - the FCRA, FDCPA, etc.

Answer 2

$5000.00 isn't all the much in today's society of fast credit.

I would have to ask.. what kind of debt are we talking here.. if it's credit cards... take the highest interest rate one... Pay the minimum payment on all the lower rate... lower balance cards.. On the highest rate.. highest balance card put as much on it as possible... When that one is paid off.. do the same thing card by card until they are all paid off....

THEN... never charge more than you can pay off at the end of the month...

NEVER EVER pay them late.... this is where CC companies REALLY make money.... late fee's are killers...

If we are talking about items that are or have been placed in collections.. contact the agency that has them.. and get them paid off.. once paid off.. get a CC and again.. pay the full balance EVERY month... or ONLY charge a very small amount and make sure payments are always on time.. this will restore and build a great credit score...

Good luck

Answer 3

1. pay off your debt
2. keep paying your bills on time
3. it will take time for your score to go up
4. not more credit cards, try to pay with cash

Answer 4

pay your debt and make sure you pay the bills on time

Answer 5

get rid of your credit cards, if you have any. those are what will bring your credit score down.

gw