Ok i am20 yrs old..i have 4 credit cards: macys, Victorias secret, capital one , and at&t...i wish somebody would have told me never to never get them,...nevertheless all of them have been sent to collections except 2 ..i'm makin payments on all of them now..If i pay off allof them by the end of the year will my credit still be bad...if i paid them off and dont get anymore??....you see i'm trying to get a car the end of the year nothing big maybe a mazda 3 or a scion t.c...but i want to know what to expect..would my credit still be damaged for life??????????
2007-08-01 03:11:37 · 6 answers · asked by ~Jessi~ 1 in Business & Finance ➔ Personal Finance
First, STOP SPENDING MONEY YOU DON'T HAVE!!!! You need to live on a budget and know where your money is going each month. Lower your lifestyle and pay the credit cards as aggresively as possible and vow to never use them again! In addition, you are not in a financial position to buy a car unless it is a cheap car that you can pay cash for until you are financially stable. Getting a car loan at this point would be ridiculous and would be in line with the poor financial decisions that you are making now. The only help I can give you is to visit daveramsey.com and check out his plan, it really works.
2007-08-01 03:18:09 · answer #1 · answered by KMack 2 · 0⤊ 0⤋
You need to sit down and make yourself a strict budget. Eliminate all the unnecessary stuff -- premium cable and internet, magazines/newspapers, eating out, new clothes, etc.
Pay as much as you can squeeze out of your budget on the highest interest rate credit card and pay the minimum on the rest. When the highest rate card is paid off, go to the next one, till you have them all paid in full.
Even tho people will tell you to keep all the cards open, I strongly recommend that you close the store credit cards. The interest rates are always high and having those extra cards is too tempting to go back in debt.
Once you get all the cards paid in full. Be sure to only charge what you can pay in full each month -- don't carry any balances.
Even if you get all the cards paid off by the end of this year, your credit score is going to suck. The interest rate will eat you up. Wait a year and your credit score will improve, provided you pay all your bills on time.
2007-08-01 10:26:00 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋
If they have already gone to collection then the damage is done, whether you pay them off or not. Concentrate on the ones that have not gone to collection and get them paid off. After that if you want to try to pay off the others that will be fine but it won't do much for your credit.
2007-08-01 10:18:02 · answer #3 · answered by Don 5 · 0⤊ 0⤋
Ok..there is a difference between colletion and credit bearu......Colletion will attemp to collect on debt..however...it is more beneficial for you to work with your credit compay because it will be an arrangement that will take internally..
in other words..work with your creditor directly..as long as you are making payments they will keep you out of collection and credit reports...
The next thing is go to a credit counseling company and consolidate your debt...that will take a few years to clear but the damage on your credit will be minimal
2007-08-01 10:18:27 · answer #4 · answered by Burt 7 · 0⤊ 0⤋
Dont borrow money..see what happens when you do.
pay off your smallest card...then pay off your next with the money rolled over from your previous card.
WHY GO INTO DEBT TO GET A BETTER SCORE.
PAY CASH..NEVER BORROW MONEY..NEVER
2007-08-01 12:47:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
you have 4 cards, all these bills... then you want to throw salt on the wound and buy a new car?
not a good plan.
2007-08-01 10:22:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋