I have about 5,000.00 dollars of a BoA Visa that appears to have been sent to a collections agency. I am 25 and make about 29k a year so i am on a shoe string budget. Would it be better to take out some kind of small loan to pay this debt off and then repay the loan or go through a debt management plan or debt consolodation plan?
2007-10-23 02:12:28 · 3 answers · asked by xano727 1 in Business & Finance ➔ Credit
I worked in banks for years (in the UK) - and credit cards are designed to get you into this way.
DO NOT go down debt management. Wrong path!
2 options - the best is to stay in contact with the debt agency, and if possible agree a repayment plan, and ask them to freeze the interest.
2nd option is as you suggested, take a small loan to repay - dont borrow any more than you need though.
Steer clear of credit cards in the future. I was a financial adviser for 5 years, and I dont have one!
2007-10-23 02:19:32 · answer #1 · answered by Itchy1977 4 · 0⤊ 0⤋
It has already been sent to a collection agency, so even if you pay it off, without a letter from them stating that upon payoff it will be removed from your credit score, it will remain there for 7 years. In addition since it has been sent to a collection agency, your credit score has already been dinged, and it may be hard, or at least the interest rates will be high on a loan to pay them off.
2007-10-23 11:14:07 · answer #2 · answered by Pengy 7 · 0⤊ 0⤋
creditinfocenter.com
2007-10-23 02:42:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋