I have about 12 accounts that are collections they are all small amounts 100 to 700 dollars. On my current income I can pay out 250.00 a month how can I go about paying to #1 pay the least amount total. #2 has the maximum positive effect on my very poor credit?
I bought a car at 24.99percent interest. It is worth about 4500 to 5700 in real money however I owe 15,000 to the bank what if anything can I do about that?
Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here
Follow the link for the debt snowball method of paying off your debts. The debt snowball is a very effective way to get out of debt and it would work wonderfully for you. Once you get all those collection accounts paid off then we can start to focus on improving your credit using a secured card or two. Once the credit improves you could then start to think about refinancing the high interest rate car loan.
We need to take this is stages.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
Get Out of Debt Guy – Twitter, G+, Facebook
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.I Have a Number of Small Accounts I Want to Pay Off in Collections. - Orlando by Steve Rhode