So, I've been working hard paying off collections and old debts. My Credit scrore was sitting below 400 about a year ago. Today all 3 are around 600. I have a $200 Secured Cap One and just got a non secured $375 from my Credit Union and a $300 Pier 1 card. So I'm really trying to and have recovered from my mistakes when i was 19-20. So, now the bad. I have recently been hit with a old account from Sprint (1-2 years old) for about $1300. I was able to get a settlement offer for $600, but havent jumped on it yet. I also have an auto loan that im 2 years into with 4 more left with perfect payments. The bad of that is it's from Drivetime and I have stupid high APR and Im about $6000 upside down. I recently tried to purchase a new car with trading this one in, but since I'm so negative with it, I cant get approved without A LOT of $$ down. Is Bankruptcy something I should consider to get out of the loan? Will continueing to work on my Credit score allow me an ability to roll over the negative amount into a new loan later down the road?
Thanks in advance for any info.
No, Pay the settlement to sprint. There are other option for getting right on your car loan, easiest would be to just continue to make your payments, as long as you don't have a need for a new car immediately. You can also pay extra to help pay down the loan, and then trade it in and take out a new loan.