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dafoester
Joined: 01 Dec 2009
dafoester's page
Posts: 4
143 Magic Points
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Subject: Which debt to pay off first??
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Thu Jan 14, 2010 6:21 pm
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I have a reposession on my credit report,it was originally $13,000 but i have faithfully made payments for the past couple years and i now have it down to $4,000.
I have a store credit card that has a balance of $2,000 that is still in good standing and i have not been late with a payment in two years.I no longer want this credit card and would like to pay it off.
Here is my question.
I have about $3,000 saved up and i would like to pay one of these off,which one should i pay off?I was thinking of making an offer of $2,000 to the collection attorney for the repo.He is my brother in-laws brother ,so he may accept it.
Any advice is appreciated.
Thanks! |
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marcusandila
Joined: 27 Oct 2009
marcusandila's page
Posts: 142
3034 Magic Points
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Thu Jan 14, 2010 9:22 pm
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honestly, I personally would go for the repossession. Thats what i would do. at the same time though, if you paid the store credit card off, you'd have 1000 to put down on a payment plan for the possession. if you talk to them, they may be willing to work things out with you.
there are other, more experienced, financial people here on this site who could help you out. thats just my opinion & what I would do if I were you. |
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ramseyedison
Joined: 28 Jan 2010
ramseyedison's page
Posts: 3
66 Magic Points
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dorothykinder
Joined: 05 Feb 2010
dorothykinder's page
Posts: 14
188 Magic Points
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Tue Feb 16, 2010 9:50 pm
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| Look for those options which you may get rid off quickly and if those are removed then you can pay the later debts remaining. |
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Mikeden
Joined: 17 Feb 2010
Mikeden's page
Posts: 2
28 Magic Points
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Subject: Re: Which debt to pay off first??
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Wed Feb 17, 2010 7:17 am
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You should follow the "debt snowball" approach for paying off the high-interest loan first above all.
Debt Collection |
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equistar
Joined: 01 Apr 2010
equistar's page
Posts: 9
101 Magic Points
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kimsmith07
Joined: 28 Apr 2010
kimsmith07's page
Posts: 10
107 Magic Points
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Wed Apr 28, 2010 5:48 pm
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pay the debt it is more important than repossession i think, all things is in your hand which you prefer is just your choice........
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Creative Ways To Pay Off Student Loans |
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tracy
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Fri Aug 27, 2010 10:12 am
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| I think repossession is the best option for you.. |
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hgimmy229
Joined: 01 Jul 2010
hgimmy229's page
Posts: 11
Location: Florida
259 Magic Points
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Fri Aug 27, 2010 3:25 pm
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If the repossession is willing to settle for half of the remaining balance, ask if you are responsible for the difference of the forgiven debt.
What forgiven debt is when you settle on a balance, if the difference of the balance exceeds to be more then $600.00, someone has to pay taxes on the debt, since the creditor forgave the debt, the consumer has to pay taxes on the debt. If they settle for $2000.00 on a $4000.00 balance, you may receive a 1099 in the mail around tax time & have to file the difference of $2000.00 as earned income in your taxes.
You need to understand how your credit score is calculated so you can know which accounts will be better to pay off first.
FICO Score Breakdown
1) 35% - Payment History
2) 30% Amounts Owed
3) 15% Length of Credit History
4) 10% New Credit
5) 10% Types of Credit Used
If you are ok with paying taxes on the settlement for the repossession, then I would pay the repossession first & then put $1000.00 towards my credit card debt.
I am a certified financial counselor so I hope I was able to give you some insight & informative information.
Best of Luck
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Heather Gimmy
Non-Profit Budget Counseling |
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nduen
Joined: 15 Oct 2010
nduen's page
Posts: 13
246 Magic Points
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Subject: Depends on a Few Things
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Fri Oct 15, 2010 5:55 am
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What you pay off first depends on what you think will benefit you the most in terms of helping your credit and also saving you more money.
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Info on: |
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Aaron
Joined: 08 Feb 2010
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Posts: 2675
48566 Magic Points
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Wed Dec 08, 2010 10:46 am
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You'd surely need to analyze which one you're capable of paying before the others. At the same time, you must also keep in mind that the one with the highest APR should rank higher in your list. This would help better your credit score.
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Johndonovan
Joined: 17 Dec 2010
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Posts: 1
8 Magic Points
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Fri Dec 17, 2010 10:19 am
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I advice you to first pay the debt which has high interest rate.
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payday loan |
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Amie
Joined: 18 Dec 2010
Amie's page
Posts: 7
143 Magic Points
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Sat Dec 25, 2010 1:07 pm
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Most consumers have multiple outstanding accounts, and navigating the murky waters of repayment can be difficult without proper planning. If you are wondering which debt to pay down first, you’re in good company, but don’t fear – there are several nuances that dictate which debts deserve your attention above others. Below we explain the differences between debts, and how to decide which ones to repay first.
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Foreclosure | Bank Repo Homes |
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orson
Joined: 14 Oct 2010
orson's page
Posts: 25
354 Magic Points
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Mon Jan 03, 2011 7:06 am
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| It depends upon the what type of debt you have and I would say its always take help of debt management companies which helps to organizing finances to systematically reduce/ eliminate debts. When an individual’s debt situation goes out of control, he/she may opt for a debt management program offered by debt management companies. With extensive credit card usage, many are immersed in debts, unable to overcome them. Debt consolidation companies come to their rescue and help them regain control over finances. Also, here’s an informative article on debt management: http://ezinearticles.com/?What-is-Debt-Management?&id=79728. |
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Jameslary
Joined: 07 Jan 2011
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Posts: 1
4 Magic Points
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Fri Jan 07, 2011 10:59 am
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It is advantageous to pay the lowest balance first. The first balances are easier and quicker to pay off.
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same day payday loans |
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