Who do I pay off in order of importance or is paying off newer collections more important?

Question

I owe money to a couple of banks, a power company, a credit card, a gym, and a doctor's office.

Answer 1

Start with the easy ones - the ones w/ the lowest amount due.

Call the companies of the larger amounts owed and ask if they will put you on a payment plan. Most companies will do this b/c its a lot of paperwork and hassle for them to send you to collections.

Then - don't spend money you don't have and learn from this.

Answer 2

You should pay all medical cost first because it is weighted more on your credit report/score. You should try to settle or pay your most current one first and work you way back. The older it gets even though you will always be liable for the money you owe, it is weighted less on your credit report.

Answer 3

I agree with paying off smaller ones to get rid of the hassle of so many lendors, but the best rule is to pay off the ones with the highest interest rates first. That's usually the credit cards.

Answer 4

If they are all in collections at this point, pay off the ones with the lowest balances first then make payment arrangements to handle the ones with larger balances.

Answer 5

order a copy of your credit report; whoever has a DLA (date of last activity) within the past 6 months, those are who you need to pay, otherwise it will drop your credit score for paying the older ones.

Answer 6

I would start with the older ones, they all put neg. bearing on your credit but the older ones put an even heavier neg. on you credit rating.