Go to Jeff Salisbury LWGate Home Page.From: Stephan Iscoe <stephan@linktosuccess.com>
Subject: re: Pay Off Debt?
Date: Fri, 29 May 1998 20:44:11 -0400
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Elliott asked:
>... my credit is so lousy that I'm thinking that it would be
> better for me to slowly pay off the cards so as to rebuild my
credit history.
> So what's a guy to do? Pay off the cards all at once? Or pay
them
> off slowly? According to the credit rating people, does it
matter?
Here are two suggestions; pick the one that suits your
temperment<g>:
1) Pay the damn things off right now and vow to only use Amex in
the future;
unless of course you enjoy paying 20% interest.
2) Tell your creditors that you have extenuating personal
circumstances and
you'd like them to freeze the interest and balance and that
you will pay them off
in nn monthly installments. If your story is good enough,
you can negotiate a lower
payoff than your actual balance, typically 50% through the
issuer and as little as
10% (!! yes) if the account has already been in collection
with an outside firm.
Either way, get the terms in writing and insist that they insert
a favorable payoff statement in your credit file, otherwise
the slow pay codes will make future lenders anxious. It
wouldn't hurt for you to also
add a note to credit file explaining (generally) the
circumstances of the late/overlimit
situation and what you are doing to rectify it - keep it short
and to the point.
Best of Success to You,
Stephan Iscoe
Ann Arbor, MI
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Dedicated to Helping You Achieve Your Goals
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