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I Have a Number of Small Accounts I Want to Pay Off in Collections. – Orlando

“Dear Steve,

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?

Orlando”

Dear Orlando,

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.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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