Unfortunately I have allowed a number of small (under ,500 total) creditor accounts I’ve had in the last two years to be charged off. I am trying to clean up my credit and am currently on a two year plan. I have current debt also that I’m paying on time. My credit score is low…524. Should I pay current debt first? And how do I handle the charge offs?
December 3rd, 2009 at 11:46 am
Pay off the current debt first. Be sure to pay EVERYTHING on time. As the charge offs get older, they will affect your score less.
As resources become available to you, contact those charged off accounts and make a settlement offer. Be sure to get any settlement offer in writing and try to get an agreement that the debt will be marked as paid. After debt collectors have your money, they tend to forget all those verbal promises.
December 3rd, 2009 at 11:46 am
pay off debt one by one and keep current bills paid on time..