Question:
Okay here it goes. I got stuck with themud end of teh stick end end4ed up for the last 6 years of my life paying off my ex;s debts. Now i have terriable creitd ans still owe 12000.00. I have doen everything I can but i am running out of options. I was offered by a collections agency to pay half of the debt i owe if i could pay it in full (6500.00) abnd they would call it even and put it in writing that the debt is paid off. I went to the bank but even with a co-signer I cannot get a loan. Mind you I have paid off everything (60, 000.00) of it but becuase I was late on payments and went on credit counceling for some, not all, of the bills I now have a credit score of 485. Any suggestion about a CANADIAN bank that would help? I am beginning to think I should have just gone bankrupt. Any help would be gratly appericated.
Answers:
Don't take on new debt to pay off the old debt! Having a debt sent to collections is the worst thing that can happen and it has happened already. The damage has already been done to your credit. Remember that collections agencies are businesses. When a company (i.e., credit card company) feels money owed to them will never be paid they sell the debt to a collections agency, write off the loss on their taxes, and wipe their hands clean of it. These agencies buy the debt for pennies. Read up on collection agencies and how the business works. They try and pressure you because that is the only leverage they have. Remember that in 7 years these entries on your credit report will disappear. If you need to improve your credit ASAP, make sure to get everything in writing and ask them for a "pay for delete." You pay them in exchange for them completely removing the negative entry from your report.
You said that you were late on the payments - are you good at managing money or was that because you had too many bills to pay? Don't take out a loan to pay a debt that has already been charged off/sent to collections. What if you can't pay this loan and are late on it? If you default on the loan then you'll have even more negative entries on your credit.
Focus on paying debt that can damage you now, like car/mortgage/government debts. Then pay credit card bills, etc. If you don't pay these your property can be seized and credit card debt will keep growing. The debt to the collection agency can't increase any more. When you are financially secure then renegotiate with the collections agencies. This should be your lowest priority.
Good luck!
like help around the house and stuff like that.
Start small when rebuilding your credit, that way you can repay it quick. Then each time apply for a little more, pay them off regaining lenders trust.
http://creditmaintainance.info/...
Something is wrong with that picture. May be different in Canada (if you ar there). But if you have had 60K in credit card debt that is now paid off, your credit should have gone up.
It is a general rule, when paying off debt scores go up. Especially signically large amounts. Of course you won't see a 150+ boost but some increase. You now need to find out if you paid them, that it is reporting paid on your credit report.
All agreements should be in writing before payment is made. And the debt should be marked "Paid as agreed", if a collection or charged of is paid and marked "paid collection", then that doesn't help you. It still says, that at one time you couldn't pay a bill.
Look over your credit report. And with a score of 485, it will be almost impossible to establish new credit. Try banks like Tribute, or Premeire, they work with people that have low credit scores. High interest rates though and they charge an amount to obtain a card, so when you get it, there is a balance.
http://www.ficocounselors.com
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