I have bad credit what should i do?

Question

I have some medical bills that i cannot afford to pay...not even a minimum payment on most of them...but i would really like to build my credit...is there a more strategic way to pay them off? or build my credit?

Answer 1

The first step is collecting all your debts & bills in a pile and establishing to the penny what you owe. Then determine what the monthly minimum payments are for your debt as it is now. If there are any expenses you can cut out of your life now, do it. Stuff like cable, starbucks, and other luxuries should be put on hold until you get a handle on things. Contact each company individually and see if they'll lower pmts or lower the interest rate. If not, see if you can go to a credit union or bank and see if you can get a consolidation loan so you only have one payment at a lower rate. I know there are companies whose business it is to provide consolidation services, but try on your own first. If you do go to an outside source, research them carefully. The very worst case scenario is you declare bankruptcy and start over. They can't take you primary living residence and after 7 yrs, it's no longer on your credit record. Make that your last resort, however. The reality is that as long as you are late in your payments without doing something about it, the worse your credit will become - and continue to get worse. Continue to pay what you can on time and research the consolidation.

Good Luck!

Answer 2

Call all of them and work out a payment plan and try to get your interest lowered or stopped.

Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.

You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership. If you

Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.

Go to the library and get "The Total Money Makeover". Read it and follow it carefully.

Go check out Dave's website as well.

www.daveramsey.com

Answer 3

At this point, even if you pay your medical bills the normal way now, the past due bill is still going to damage your credit. In fact, paying on a deliquent account like this will actually hurt your credit score!!! The reason for this is, negative items on your credit report are less damaging the older they get. When you pay on or pay off a derogatory item, it makes it appear newer, and your credit score will DROP!

If you REALLY want to raise your credit score in a hurry, save your money, and then see if the collection agency will agree to remove the negative item from your credit report in exchange for payment. Many creditors will agree to do this, as the just want your money. Make sure you get the agreement in writing before sending in payment!

If paying the medical bill is not possible, the only way to improve your credit score is to wait. Negative items fall off your credit report 7 years from the date you first became deliquent. As I said earlier, the older deliquent accounts are, the less damaging they are, so you may have to wait patiently before you qualify for a credit card. It's possible you may not have to wait the full 7 years before you can get a credit card. You could apply with Orchard Bank or Capital One - they have credit cards specifically for people with bad credit. When you get approved for a credit card, make sure to keep your balances low, and always pay on time. This will establish a positive tradeline, and help you improve your credit.

Answer 4

Medical bills are worthy of special consideration. As long as you are making an effort to pay something each pay period what ever you can afford is good. The rest of your bills need to be paid on time. Revisit your budget and check to see if you can cut any corners. I know, I know. Things are tight and there is no money but check. If you have a bank account statement that comes to you: check it! You maybe surprised what is coming out or where the bulk of you money is being spend. Also the hospital has some organizations that will contribute to your account for the tax benefits for their own benefit. You can also check for people willing to contribute to your hospital bills. Including your job, friends, family. Good luck.

Answer 5

Look, you keep asking the same question over and over. And you don't pay your bills. That's not the way life works. If you want to have good credit then you need to pay your bills. You need to take responsibility for your actions.

Answer 6

I went with a debt settlement company that help me get rid of bad debt and lower the amount I had to pay. I improved my credit drastically in only a year. It was way worth it because now I can get a credit card or finance a new car if I want to. Here is the link if you want to check them out:

http://www.idealhelpnow.com

Answer 7

i had bad credit with medical bills too once, what i done, was call thier creditor (number on the invoice) and explained to them i couldnt afford thier minimum, and offered to cure the default with what little i could (25.00 monthly respectively) they accepted this, and i managed to get em down, and they never reported the new "below minimum" pay to the creditors.

Answer 8

If you want to build your credit, you need to pay your bills.

In fact, you need to pay your bills ON TIME.

There's no shortcut. People who loan you money want to know they'll be paid back, on time, without any problems. If you have a history of doing that, you'll have a fine credit rating. If you can't pay your bills, you'll have a terrible credit rating.

Is that so hard to understand?

Answer 9

Here's one strategy.
If your percentage is 18%, owe about $3000.00.
Take the percentage devide in half. Multiply 3000 by 1.09. Devide by 12. That should be your monthly payments.
Your twelth payment should be as much.

Answer 10

See what you can scrape together, and one by each offer them a % of payment - in medical they may accept 50%.

then your bills are cut in half - and should be more manageable.