If I'm close to 90% utilization and have some non card debt that could be hard to pay in full at once. Should I pay these large items and just pay what I can on my cards which are all paid as agreed? or let big items go to collection and pay later , but pay cards off in full now if I will have money this month. But can't do both . How adversely will my score drop if non card debt gets sent to collection and shows on credit report. Tu 673, Exp 626, EQFX 606
You should certainly NOT allow any debts to go to collections if you can possibly avoid that!
I seem to be missing something, though. You talk about paying cards in full while letting other debts default. Why can you not just make payments on all your debts? If you're facing a rough situation, there's no need to pay anything in full, just make minimum payments on everything and if you can, make larger payments on one account at a time in order to start cutting down on debt.
A little more explanation, please.
I helped a family member with getting services in my name and making them an authorized user on my cards which they maxed out. They didn't pay the utility I got in my name. I have almost enough to pay the card balances or stop the other from going to collection, but not both. That is a good suggestion to pay just minimum on cards. I am in process of removing them from the card accounts.
Wow. I'm sorry that happened to you! Unfortunately, all too often relatives that we want to help don't deserve or aren't capable of appreciating our help, and that sounds like the case here. I hope you can dig your way out of this mess without defaulting on anything. And good going removing that irresponsible person from your credit cards!
Yes, as long as you can afford to make at least the minimum payment due on both the cc and non-cc debts, you're making a start on repayment without damaging your credit any further.
You should then choose ONE debt (I would say the smallest debt, others would say the debt with the highest interest rate) and pay more than the minimum on just that one. Pay as much as you can manage each month on that single debt until you've gotten rid of it, then switch to paying as much as you can on the next debt on your list while continuing to make minimum, on-time payments on everything else.
If you CAN afford to PIF one or more debts without letting others go into default, that's great. But if you let anything default you're likely to end up taking a HUGE score hit and having to live with the consequences for seven more years.
Good luck to you! And keep us posted about your progress.
BTW, what have you been able to do about those utilities that are in your name and are not being paid by the person you helped? Can you either get them out of your name or at least have the bills sent to you for the time being so you can guarantee that they get paid?
Just curious and you may not think this is anybody's business, but is the person you tried to help doing anything to pay off the debts he or she ran up?
Is it at all possible for you to pay down the credit cards enough so that you can charge the utility bills to one of them? That way you'll have the utility paid off and then can work on paying down the CCs? Or better yet, pay off the utility with your CC and then have them shut the utility off. That way it is sort of like a balance transfer and you'll have the problem bills out of your name, and can focus on cleaning up your CC debt. I hope that the problem with your family member clears up.