What is the best way to pay off my creditors and repair my credit?

Question

In 2006 my father had to have surgery, so I moved in with him to help him recouperate. He's fully recovered now, however, not being able to work for a while really caused me to get behind on all of my bills. Now it is to the point that I don't send payments at all. I worry about this constantly. All of my credit cards and store cards have high balances and are in collections. What is the best way to go about paying off my creditors and repairing my credit?

Answer 1

with all the charge offs and collections your credit is toast.

get a coy of your credit report.

Start with the smallest and pay them off as fast as you can. Once they are done move your way up the food chain.

If they offer settlements on accounts get it in writing first before you pay them 1 red cent

Answer 2

send them what you owe.  Then they will stop bothering you. And over time your credit score will improve.

If you can't send it all now,  work 2 or 3 jobs until it is paid off.  Best way to pay off what you owe.

Answer 3

First - you can use credit repair agency, for example this one - http://freecreditreport.sinfree.net

They will clean lots of such bad stuff from your credit report - and do it much faster than yourself, so your credit will go up fast.

After credit repair your score will go up significally - so you can get debt consolidation loan, with much lower interest rate.

Answer 4

Consildate your debt and pay it off. Try to negotiate with the collection agency to pay 50%. Tell them you will pay half of it right now and chances are they will say sure! But before you pay ask them for a deletion letter. Pay for delete is absolutely required! See the example.

http://www.creditliberty.com/credit-repa...

Answer 5

If your credit is good enough to still get a loan, you can consolidate, if not you need to to go to someone that can help you consolidate and pay less each month, they can work with your creditors so you don't do further damage.  Then you will have to work on repairing the damage that has already been done.  I would go to a reputable credit repair agency since you have a lot of debt.   You should also work on getting positive credit by getting a secured credit card, and paying it on time.  Try to get some books on credit, credit repair, money management, debt etc., these books or information will give you a better understanding of what credit is all about.  This will keep you on track the next time around.

Answer 6

get a consolodation loan to pay off everything and group it together into one loan. Then use every penny you can to pay that loan off as fast as possible.

Answer 7

Call all your creditors and be Honest with them.  I know this sounds simpler said than done!  See if they would be willing to work out a payment plan that works for you.

I know it will not be easy, but at least you will have given it a shot.

They will be more understanding than you think, because at least they will get some of their money back.

What ever you do don't file bankruptcy and don't fall for credit doctors that offer to fix your credit, both will only make it worse.  Remember there are no reputable credit repair agencies.

Good Luck!