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help -- tuition in collections vs. paying down credit cards

New Visitor

Re: help -- tuition in collections vs. paying down credit cards


I don't know if that information is longer correct.  I think you need to look at the interest rates and balance on each account.  If on one account you are paying a small amount of interest as opposed to another account paying a large amount of interest you may come out better to pay more on the account with the larger interest rate, (so that you are lowering the interest rate and then your larger payments really start to make a difference).  Every situation is different and you have to sit down and figure it out for yourself.  I know it took me awhile.  I even had to argue the point with my creditors but it saved me money and made me accountable.  The thing is it is your money.  You worked hard for it and it should be your decision it figure out how to dig yourself out of the hole.  It is not easy but it can be done.  I did it and I am proud of myself for paying off my debt!  Just remember you are not the only one in this situation.   

Message 11 of 13
New Visitor

Re: help -- tuition in collections vs. paying down credit cards

Collections stay on your credit report for 7 years from the date of your LAST PAYMENT !!!  if you chose to pay the student loan, then it will stay on your credit report until 7 years from the date of that payment.  A collection weather paid or not affects your credit report the same, my thought would be to concentrate on paying off the credit cards because as you pay down the balance, you have more available credit and that will raise your score drastically !!!   And they say that collections have less of an impact on your score the older they are   Also if you are not paying anything right now on your student loans, you might have a better advantage to make the deal of I pay in full you remove from my credit report.. but before you send them a dime make sure you have it in writing !!!!

Message 12 of 13
Established Contributor

Re: help -- tuition in collections vs. paying down credit cards

Take care of the student loans first - they will not go away. 

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Message 13 of 13