Have to make a decision by tomorrow, PLEASE advise!

[Jon85]

Hey all!

So, I had $3,500 set aside for my "debt goals for March."

Unfortunately, I just had to use a lot of it for emergency services very last minute, so I'm left with $1,500... which is ironically the equal amount of two debts.

I have a $1,500 judgement I can pay off... OR I have an old $2,500 Sallie Mae Private Loan (charge off but still OC) that I can settle on for $1,500... once I choose which one to pay, I can't pay another big one until the middle of April... 

Which one should I choose in regard to helping my journey to rebuild? I know neither will give me points... I just can't decipher which one should take the backburner for now.. 

[dodfire]

Which one is the newest and has either one or both agreed to a PFD?

[guiness56]

I don't think you can PFD a judgment. 

If your state doesn't allow wage garnishment, I would go with the Salle Mae.

The judgment will still be scored as a judgment paid or not.

[Jon85]

Hi dodfire:

I can't PFD for the judgement... the best I can do is try and file a motion to vacate after it's been satisfied. And for the Sallie Mae charge off, they definitely said they wouldn't PFD... that's why I'm so confused. 

I think my state does have wage garnishment, unfortunately... on top of that, I'm scared that they'll go after my bank account and just take my funds out when I'm not expecting it.... so one of the main reasons I wanted to pay off the judgement was so I could get rid of that fear.

Do you think if I pay the SM charge off (settlement) without a PFD, it would make much difference "score wise" when weighed against an unpaid judgement?

[dodfire]

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@Jon85 wrote:

Hi dodfire:

I can't PFD for the judgement... the best I can do is try and file a motion to vacate after it's been satisfied. And for the Sallie Mae charge off, they definitely said they wouldn't PFD... that's why I'm so confused. 

I think my state does have wage garnishment, unfortunately... on top of that, I'm scared that they'll go after my bank account and just take my funds out when I'm not expecting it.... so one of the main reasons I wanted to pay off the judgement was so I could get rid of that fear.

Do you think if I pay the SM charge off (settlement) without a PFD, it would make much difference "score wise" when weighed against an unpaid judgement?

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Based on your response here...... If it were me, I would pay the judgement first. 

[guiness56]

Yep, pay the judgment.  You really don't want to take any chances with that.

[Jon85]

Okay thank you, then that's exactly what I'll do. Even if it doesn't impact my score in any positive way, at least emotionally it will be a great relief, so that's positive in itself.

Thank you for your advice. 

[dodfire]

Good choice you made!!

Feeling of accomplishment and peace of mind is better than seeing a rise in your score.

The score will come with time....be patient.

Best of luck!!