My credit is not terrible but I have some large bills in collection. They total approx. $6,000.00. I don't make enough money to live and pay them also but I don't want them hurting my credit any more than they already have. What should I do. If I could get a loan I would just pay them off.
With poor credit, you may not be able to find an unsecured loan to fit your needs. If you do find a loan, you should expect to pay a premium in interest for the credit risk you pose to the lender. Many banks are hesitant to lend to borrowers with poor credit histories.
In my opinion, the best option for resolving this debt would be to borrow some money to pay off your credit card debt; since the amount of your debt relatively small, hopefully you can borrow the money you need to resolve the debt from a friend or family member. If that is not possible, you should talk to your banker about obtaining a small personal loan. Even if you cannot borrow the money from your bank, you may be able to obtain a loan. One option to consider are Prosper or Lending Club, which are peer-to-peer loans. Prosper and Lending Club connect private lenders with private borrowers, facilitating loans that may not be possible in the regular banking environment. I also encourage you to visit the Bills.com loan resource page.
If you can borrow a small sum of money, contact your creditors and attempt to settle the accounts that are in collections. The creditor may be willing to accept the reduced amount to resolve the debt. If you are able to negotiate settlements with your creditors, it is imperative that you obtain written settlement agreements from the creditors prior to paying the settlement amount, as you will need this proof in case the creditor fails to live up to its end of the agreement.
If you cannot find the funds needed to offer a settlement to your creditors, you should be able to negotiate a repayment plan with them. It is important that you focus on resolving the accounts that are in collections, as you do not want the creditor to sue you in court, which could lead to a lawsuit escalating to a judgment and potentially to a wage garnishment or bank levy. I encourage you to contact the creditor as soon as possible to resolve these collection accounts. Again, whatever agreement you reach with the creditor, it is important that you obtain a written agreement outlining the terms of your agreement before your make your first payment to the creditor.
To learn more about various debt relief options, I encourage you to visit the Bills.com Debt Help page. I wish you the best of luck in resolving your debt, and hope this information helps you Find. Learn & Save.