While I know that the debt that you are facing may seem daunting right now, in reality your situation is not that bad. From the information in your question, it sounds like you owe, at most, three thousand dollars on all of your debts combined. I know that may seem like a lot of money, but in the grand scheme of things, it’s not very much. You should be able to resolve the debt relatively quickly if you can establish a repayment plan with your creditors. Hopefully, your income has stabilized to some degree, allowing you to commit to a set payment each month to your creditors. I would encourage you to review your budget to determine what amount you can afford to pay to your creditors each month. Then, contact your creditors to negotiate repayment terms with them. If possible, you should try to pay more money to your highest interest debt first; the faster you can pay off your high interest debt, the more money you will save in overall interest charges. You are lucky that your largest debts are the cell phone bills, as they are likely charging you much less interest than your credit cards, meaning that you should be able to pay the debt off faster. As you can see, this predicament is not insurmountable; it will require some commitment and sacrifice on your part, but it will be worth the effort. If you would like to read more about debt and some possible ways to free yourself from it, I encourage you to visit the Bills.com Debt Help page.
In regard to your credit rating, your credit is probably taking a pretty big hit from these delinquent accounts. However, as time passes and you pay these accounts, you should begin to see your credit rating improve. Also, if you have any other accounts appearing on your credit report as current, such as a car payment, other credit card, etc., these trade lines should exert a positive influence on your overall credit profile. One way to start building a new positive trade line is to open a secured credit card. These cards work on a relatively simple principle—you deposit money into an account with the card company, and the company gives you the equivalent amount of credit on your secured credit card. While it may seem strange to use your own money to obtain credit, these cards can be helpful in that the card companies report your monthly payments to the credit bureaus, thus allowing you to start rebuilding a positive account history. You should also remember that as time passes, the negative impact of these old accounts on your credit rating will become less and less. Although your credit rating is probably not in great shape right now, there are ways you can improve it in much less time than the seven years needed for the accounts to fall off your credit report. Unless you are planning to make a large purchase, such as a home or vehicle, in the near future, your current credit problems should not cause you many problems. For more information about credit, credit scoring, and credit reports, I encourage you to visit the Bills.com Credit Resources page.
I encourage you to carefully review your credit reports to make sure that all of the information appearing on your credit reports is correct, as inaccurate information is a common cause of credit problems. Since you are concerned about the negative impact your delinquent debts are having on your credit score, you may wish to dispute those listings on your credit report once you have paid them. While filing a dispute is certainly not guaranteed to remove the listings from your reports, there is a chance that your former creditors will not respond to the disputes and that the accounts will be removed from your credit report. In addition, if you have any questionable items on your credit report which you think are reporting inaccurately, disputing the items is the first step in having them removed from your report. Generally speaking, I encourage consumers to carefully review their credit reports from each of the three major credit reporting bureaus–Equifax, Experian, and TransUnion–at least once per year to make sure that all of the information appearing on the reports is accurate. You can obtain free copies of your credit reports once every twelve months by visiting www.annualcreditreport.com. Credit reports are notoriously inaccurate, and close scrutiny is required on your part to make sure that your credit report is current and accurate. The Federal Trade Commission offers a free guide to disputing items on your credit report, available at www.ftc.gov, which may help you in cleaning up your credit reports.
I wish you the best of luck in resolving these debts, and hope that the information I have provided helps you Find. Learn. Save.