Question by Cat: Fixing Credit Score?
I got my credit report and have a tom of bad stuff on it. I messed up when I was younger and want to fix it. I would like to have a house someday.
First i don’t and never had a charge card so i don’t have any debt that is collecting interest. Most is medical bills a repo’ed car, cable bill, and cell phone bill and an apartment I moved out early on.
How do I do this.
#1 Do I pay off biggest amounts or smallest amounts first?
#2 Do I pay off oldest or newest bills that are in collection?
#3 IF my credit report says “date this item will be removed is 3/2007” should I even pay it off or will it disappear like it was never there and if that is the case will it still affect the credit score?
#4 Do I need to contact the Collection agency before I pay or do I just send in the money
#5 Should I send money to collection agency or to the company I got the service from?

Thanks for any info I can get.

Fast Credit Repair
Best answer:

Answer by bennyp
#1: I would add up your total debt, figure out how much you can afford each month, and then make payments based on the amount you can afford. (IE: $ 0.03 per $ 1.00 per month on each account)

#2: Debt is debt, regardless of what the collectors tell you I’d apply an even priority to all accounts.

#3: If a debt becomes statute bared (too old for a creditor to pursue) it is still outstanding, however it may be removed from your credit file. A creditor can get a court order to prevent the debt becoming statue bared.

NOTE: A debt becomes statute bared 5 years from the last payment or contact with the creditor. (3 years in NT) Contacting your creditors or making a payment may start the 5 year period again. I would suggest seeking legal advise before contacting your creditors if it has been a while since you last spoke to them.

#4 & #5: I would contact the creditor directly and let them know how you intend to pay the debt. Stand your ground and make sure the payments are made on YOUR terms. A collector is paid to get the maximum payment from you possible, do not be tricked or threatened into paying more than you can afford. You need to use a “take it or leave it” approach, let them know who’s boss and make sure you still have money to live + have fun.

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