I am a college student and since I’ve been in college I have acquired some credit card debt. Within the past year I found a better paying job and have been able to pay down my debt. I haven’t been late on any payments and I have been paying more than the minimum. All of my credit card accounts are in good standing. I don’t know if this matters but my credit score is “Good”. I have come across some extra money and want to pay off all of my credit card debt.
Before I just go ahead and payoff all of my credit card debt, would I be able to/would it be worth negotiating a lower amount than what I owe on the cards with higher balances? Or should I just pay them off? If I can save a couple hundred bucks by doing so I would like to.
I would suggest that the modest savings you may experience would be greatly offset by the credit hit you’d take to be 90-120 days late on your cards to talk about a settlement.
If you have the cash, pay the debts off in full. The improvement to your credit report and credit score will be a real bonus for you.
Just remember to NOT close your two oldest major credit cards when you pay them off. Leave them open to boost your credit score since the longer history carries more weight.
Please post your responses and follow-up messages to me on this in the comments section below.