I have about $7,000 in debt on my credit report for Dr. bills should I consolidate and pay them off or should I pay them off individually, my current savings status would allow me to pay them off but would leave me broke. Also, my bank still shows a loan from 15 years ago as “open” it is paid, all on time, will this affect me score?
How should I handle my situation?
If these medical bills are not charging you interest then I would use the debt snowball method to pay them off. If they are charging you interest then I recommend consolidation loans from LendingClub.com. If you decide to get a consolidation loan from this peer-to-peer lending network then let me know how to identify your loan request when it posts and I’ll gladly be one of the investors that funds your request.
Kudos for checking your credit report and looking it over. I’d suggest you get a consolidated credit report if you have not looked at all three bureaus. The link is the same place I get mine from.
The open loan is interesting. I suppose it could hurt you by showing you have more outstanding credit than you actually do but if it is still reporting right now that the loan is open as of this month and current then it could actually help you by being a good and aged line of credit.
And you deserve a pat on the back for not draining the savings to suddenly pay this debt off. Keeping that money is savings let’s you have an emergency fund and that’s just really smart.