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how do i go about paying my debt off?

I am about 7k in debt and have maybe 1k to spare to pay some of it off. I want to pay more bu don't have the finances right now. So how do I go about paying my debt off? I know they usually will settle for less in one lump some but is there a way to get it as low as possible. I mean will they really turn me down if I offer $600 towards a debt of $1000? I just need suggeations that might help me pay off as much as I can with the little amount I have. Is it better to try and pay off old debt as oppossed to new debt? Is it better to pay off the highest debt or a couple smalls ones? Thanks for all your suggestions. Oh yeah one more, do you think I should play hard with the collectors and ask for mgrs or should I be sweet?

Answer Question

Asked by Anonymous at 10:18 PM on Feb. 6, 2010 in Just for Fun

Answers (4)
  • It is always best to pay off the debt with the highest interest rate first

    Answer by momov4kids at 10:23 PM on Feb. 6, 2010

  • You don't mention whether you have an income. You can be sweet with collectors and still ask for managers if you aren't getting the help you need. Don't be to harsh with people you want to do you a favor. If you offer a lump sum that is less than what you owe, even if they accept the offer it will go on your credit report against you. You would be better off making arrangements to pay it all off in payments. Take the smallest bill and double those payments. When it is paid off add that to the next payment and so on. It won't happen over night but you will get there. Also, if possible, don't incur any new debt. Switch to a cash only lifestlye until you are out of debt.

    Answer by CorrinaWithrow at 10:25 PM on Feb. 6, 2010

  • There usually has to be a good reason for you to be able to reduce your debt. They can make an offer to you. It will be harder for you to call up and say you only want to pay part of your debt. They may want to make you have smaller payments over a longer time or something like that.

    Having $1000 "to spare" is a lot! Many people they deal with haven't eaten and don't know when they are going to eat next.

    You should be honest.

    Answer by Gailll at 10:31 PM on Feb. 6, 2010

  • OP here- I am a SAHM and full time student so I don't have an income. This I part of my finacial aid that I have left. I want to make good use of the money.

    Answer by Anonymous at 10:31 PM on Feb. 6, 2010

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