Need a little advise.....

[jaksilee]

Ok I was a wild child in my very early 20's and I ran up some debit that went into collections and is still there, about $1300.00 dollars worth. What is the best way to handle this? I have been sending small amounts as I can for years but I have always lived paycheck to paycheck and have not been able to build it into my budget. Should I go get a loan and pay it off out right or buckle down my belt and pay it monthly? What is your take on this!!!

TIA

[genchan]

Re: Need a little advise.....

If it's gone to collection, you might negotiate a settlement with them, but whatever the settlement is they would probably want immediately. If you do that route, make sure to get a letter from stating that the debt was "paid in full" if possible - this will help your credit.

[MrsChambers]

Re: Need a little advise.....

whelp, I have to assume that if you have this in collections, that it's reporting and that you will prolly not get a loan because of the collections. and then if you were to get a loan the rate wouldn't justify the means.

can I ask you if you have pulled your credit reports of late?
is this collection showing on your report?
how is it reporting on your report?

tell me more

[sweeps]

Re: Need a little advise.....

Good advice from genchan about getting a letter. There are some shady "settlement" companies out there. Document all your payments and communications with them. If you are fortunate enough to negotiate a settlement, get it in writing.

Mrs. Chambers is also right... It's probably affecting your ability to get a loan. My wife had a bogus collection amount of $17(!) on her credit report that prevented her from getting any credit. We just went ahead and paid it rather than spend months to fight it.

[jaksilee]

Re: Need a little advise.....

Yes I have pulled my credit report...but I didn't get a score with it (free anual report) and it shows these items I need to pay.

[MrsChambers]

Re: Need a little advise.....

okay
so first of all

who are these collections being held by?

what is the date that these were opened on your credit report?

how is it/are they reporting on your report?

[BAGAGT1]

Re: Need a little advise.....

I don't have any personal experience with debt collections, but the following is good advice:

http://moneycentral.msn.com/content/Savinganddebt/Managedebt/P65141.asp

http://www.bankrate.com/brm/news/DrDon/20020118a.asp

[jaksilee]

Re: Need a little advise.....

okay
so first of all

who are these collections being held by?

what is the date that these were opened on your credit report?

how is it/are they reporting on your report?

(ok I hope this is what you needed...Thanks again for you input!!

First off the collection stuff is only showing on 1 of the 3 reports I got. I have 2 listed and a few small thing at others that are not.

those on credit report....
1. Associated Collectors listed in 2001 shows as being placed for collection (medical bills) Aprox $730
2. State collection listed in 2002 shows as being placed for collection. Aprox $410

those not on credit report...
2 misc companies aprox total $135 (not sure on dates for these)


For aprox grand total of $1275

[dealsaver]

Re: Need a little advise.....

Creditnet.com is a good place to go to get answers to your credit related questions.