I have $900 in bad debt and no credit cards, should I pay them off or get secured credit?
The debts are rediculous medical bills from my boyfriends fathers office, he told me it'd be free but I guess not. I also have 21k in student loans through the stafford loans which are being deferred. I have never been approved for credit cards and I'm wondering if I should get secured credit or have my parents add me as an authorized user on some credit cards.
Which steps should I take to help my credit report? How fast will my report change?
Answers:
With those debts how can you even be thinking of getting a credit card? Pay off the student loans and get rid of the other debt (no matter how unfair it is). It is unlikely you will get a loan anyway, secured or otherwise, with those debts.
If you pay off all your bad debt, your credit will be good in a few months to a year. Once you have everything 'paid as agreed' or at least paid off you'll start getting regular credit card offers. If your student loans are from the government and not a bank, they are willing to make just about any payment plan (if you need it when your deferrment is up) as long as you say you plan to pay it back someday. Even the banks are kinda friendly about student loans.
I wouldn't borrow from the parents unless absolutely necessary, and wouldn't go thru the hassle of a secured card. (Why give them money to loan back to you? Keep the cash!) If you have enough in the bank to pay off the $900, do it and wait till your credit gets better. If that blows all your money, your parents will help you out if your car needs new tires or something--wait until you need it before you borrow it. Deal in cash and debit cards until then. Your credit score will probably recover almost as fast without secured credit as it would with it.
Unless those debts are nearing the 7 yr age limit . realize that they will hang with you a longggg time , and all loans made to you will be at maximum %. You will be paying stuff off until you are 50.
With all that debt you should NOT get cards or incur any more debt as you are already tanking your life.
Ask your parents if you can move back in for maybe 6 months while you work 2 jobs and pay 75% of your check to the loans . Give your parents 15% and use the other 10% for fuel and laundry until the debts are cleared.
OR get a credit card and finish your $$ suicide run .
Do not get involved in your Parent's credit cards - that's a NO, No.
Make an arrangement with your Boy Friend's Dad - tell the Dad that his son told you that it would be free and the Dad will give you a break in some way. Lay it on thick with the Dad and don't discuss any of it with your BF.
A sound debt management is paying off your lesser bills first. This is done by making the repayments on your higher bills and make minimal required payments. On your least bill add a bit more until it is paid off and then move all that up to the next bill. Eventually you will have the debts under control and might be in a position to get a small consolidation loan freeing up more funds that you can save. The student loan sounds fine to me so minimal payments there would be ok.
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-cons...
if it helps kindly remember me in your voting!.. cheers!
I took out a loan secured against my car , what can a baliff do if he cant find the car ?
I have been offered a secured loan of £10,000 - brokerage fee £1000, arrangement fee £250 - is this bad?
What are the pro's and con's of a secured loan?
How do you secure a $50 000 dollar loan from your relatives?
Can i go to the bank with a judgement lien i have on someone and get a secured loan on it?
Which steps should I take to help my credit report? How fast will my report change?
Answers:
With those debts how can you even be thinking of getting a credit card? Pay off the student loans and get rid of the other debt (no matter how unfair it is). It is unlikely you will get a loan anyway, secured or otherwise, with those debts.
If you pay off all your bad debt, your credit will be good in a few months to a year. Once you have everything 'paid as agreed' or at least paid off you'll start getting regular credit card offers. If your student loans are from the government and not a bank, they are willing to make just about any payment plan (if you need it when your deferrment is up) as long as you say you plan to pay it back someday. Even the banks are kinda friendly about student loans.
I wouldn't borrow from the parents unless absolutely necessary, and wouldn't go thru the hassle of a secured card. (Why give them money to loan back to you? Keep the cash!) If you have enough in the bank to pay off the $900, do it and wait till your credit gets better. If that blows all your money, your parents will help you out if your car needs new tires or something--wait until you need it before you borrow it. Deal in cash and debit cards until then. Your credit score will probably recover almost as fast without secured credit as it would with it.
Unless those debts are nearing the 7 yr age limit . realize that they will hang with you a longggg time , and all loans made to you will be at maximum %. You will be paying stuff off until you are 50.
With all that debt you should NOT get cards or incur any more debt as you are already tanking your life.
Ask your parents if you can move back in for maybe 6 months while you work 2 jobs and pay 75% of your check to the loans . Give your parents 15% and use the other 10% for fuel and laundry until the debts are cleared.
OR get a credit card and finish your $$ suicide run .
Do not get involved in your Parent's credit cards - that's a NO, No.
Make an arrangement with your Boy Friend's Dad - tell the Dad that his son told you that it would be free and the Dad will give you a break in some way. Lay it on thick with the Dad and don't discuss any of it with your BF.
A sound debt management is paying off your lesser bills first. This is done by making the repayments on your higher bills and make minimal required payments. On your least bill add a bit more until it is paid off and then move all that up to the next bill. Eventually you will have the debts under control and might be in a position to get a small consolidation loan freeing up more funds that you can save. The student loan sounds fine to me so minimal payments there would be ok.
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-cons...
if it helps kindly remember me in your voting!.. cheers!
The Secured Loan information post by website user , LoanSecuredLoan.com not guarantee correctness.