Help me fix my credit plz

[Formerly Black Trash]

I have student loans adding up to about $10, 000

And some small collection accounts that are easily paid off

I make about $400 a week

Should I pay off my collection accounts immediately

Or just focus on taking out my student loans one by one

Right now I can really afford to put about $75 per week towards student loans

 

[JahFocus CS]

Immediately do the following:

1. Come up with a monthly budget and determine what your fixed expenses (rent, car payment, etc.) and variable expenses are (gas, food, etc.). For your variable expenses, to a significant degree you have discretion over what those can be, so set a cap on each of those expenses.

2. Determine the balance of each student loan account and order them by interest rate. Definitely prioritize the loan with the greatest balance and highest interest rate.

My recommendation would be to determine the maximum you can pay towards your debt each month and include that as a fixed expense in your budget. Cap your variable expenses. Then whatever money is left over, you can use as discretionary (entertainment, shopping, etc., but I'd advise taking a chunk of it and putting it to the side to build up capital to start your own venture in the future).

There will be a Cream Scheme video coming out on this topic within the next month or so, so definitely tune into that. Good luck breh

 

[hashmander]

please let your student loans be federal and not private. if it's federal, get enrolled in PAYE if you aren't already. with your wages your student loan repayments would be 10 bucks a month if that.

having said that, the $10k student loan is not a negative on your credit report unless you're making late payments or none at all. it's a positive if you're doing everything right because it shows a debt that's being serviced as agreed. that reflects positively on you.

if it's a private loan pay it off as quickly as possible.

your other accounts in collection aren't good regardless of how small they are. the fact that they were small is the reason you should never have let them gone to collections. even paying them off won't be an instant boost to your credit, that will take time to correct itself. read these and google more because paying off an account in collections is not always advisable.

If I pay off a collection account will my credit score improve? | Credit Karma
7 Facts About Collections and Credit Scores

 

[Truefan31]

budget yourself first, figure out how much you can throw at your debts.

Those the only debts you got? no car payments or nothing?

Immediately pay off them small collections, get them done. Then attack your student loans hard. Called the debt snowball, listen to people like Dave Ramsey and Chris Brown (financial guy Chris Brown). Try to be debt free breh.

 

[Good Guy Guevara]

Before you pay off your collections try to a written agreement with your debtors and creditors agencies to have those removed from your report.

But like other posters have said it all starts with budgeting your income first. Once you have that under control it'll be easier to tackle other obligations.

 

[Formerly Black Trash]

@Truefan31 yup that's the only debt I have.

All my student loans are federal. I did PAYE but it said some of my info was in error so I'm going to call them tomorrow.

Definitely will call collections and will see if I can get them to remove stuff and put it in writing.

Thanks folks

 

[ADevilYouKhow]

Just try to get them to remove stuff and you should be good. Pay your loans on time. Open a credit card at some point but don't use it or just buy small stuff and pay in full or max 30% balance a month.

I have a credit karma and transunion account to monitor things.

 

[Reginald Noble]

The only thing you need to be focusing on is getting your income up.

Nothing is going to help your credit other than paying quickly and paying large sums.

You can't pay large sums quickly without high levels of net income. You need to focus on job hunting and forget about credit.

My credit bottomed out at like 500 in late 2012 or some shyt due to late payments on student loans (as well as having no credit cards oddly enough, not a good mix of accounts they claim).

By the end of this year I'll be at 700. This was only accomplished by increasing my income not once but twice in the past 3 years by getting a new job as well as probably again this year.

fukk loyalty to employers, strategize obtain marketable skills and get your money up. Move at least once a year especially if you are under age 25. Hustle man.

 

[Truefan31]

Before you pay off your collections try to a written agreement with your debtors and creditors agencies to have those removed from your report.

But like other posters have said it all starts with budgeting your income first. Once you have that under control it'll be easier to tackle other obligations.

You can try that, definitely but if the amounts are small, they probably won't budge. But if they do then do it, get it in writing and use a CC to pay it. But the sooner the better. Like today/tomorrow. Get it out of your life.

@Truefan31 yup that's the only debt I have.

All my student loans are federal. I did PAYE but it said some of my info was in error so I'm going to call them tomorrow.

Definitely will call collections and will see if I can get them to remove stuff and put it in writing.

Thanks folks

Yeah, get motivated breh. Stay committed. You can knock out that student debt faster than you think if you buckle down and make it a point to budget and live on less than you make.

 

[无名的]

What do you spend money on each month? It starts with proper budgeting, which most people can't do. Then you learn how to do basic things like shop efficiently. Mostly already said here, but pay off your accounts in collections, see if you can refinance or lower your student loan payments, get a credit card for small purchases to pay off the full balance each month and pay all bills on time. Then make more money.