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Posted in Paying Your Bills
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rzlgq1025

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Advice for paying of a LOT of debt?
So, a little backround about my situation...I'm 24 years old, about 3 years ago, I racked up a LOT of debt. I had gotten some inheritance when I was 19 and was very irresponsible with it. In the end I had blown all of it, ended up with about $3,000 in credit card debt, was evicted from my apartment owing them around $5,000, and about $2,000 in other debt. I had a job at the time, but it was minimum wage and hardly covered my car/phone bill/groceries. Since then, I've also racked up a lot of medical bill debt as well. Fast forward to now, everything is in collections and I finally got a job that pays decent, not a lot but enough to where I can start paying off some of my debt. I thought it was going to be easy, just call the collections agencies, set up payment plan, and everything will be fine and my credit will improve. HOWEVER, after reading a little on here I now realize it isn't nearly that simple and before I start paying anything, I want to be informed on what I should do. I'm somewhat of an idiot when it comes to anything financial (as you may have gathered from my past), so I'm completely lost as to what I should do at this point. I want to start paying off my apartment first and foremost so at some point I can get another apartment (which, with an eviction I know won't be easy but that's a whole other situation). I have the collections paperwork for them, and am planning on calling as soon as I get paid again to set up a payment plan. However, is a payment plan even possible with collections or do they demand the money up front? And is there anything I should do or ask for before giving them any money? Same goes for my other collections.

Thank you so much to anyone who has actually read this mess and offers some suggestions. I have no excuses for all the financial mistakes I have made, and am hoping from this point forward to improve my credit and become financially responsible.

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Don't go beating yourself up over this because many people make financial mistakes (like me) but you are owning up to the mistakes and waznt to correct them. I do suggest searching online for Dave Ramsey's site since he does have very sound information on debt repayment.  If you haven't already,please take the time to read the articles provided by this site so you can have a clearer understanding of how credit works and some of the things you can do to improve your score.  This is very valuable information that is not taught in schools, but should be.  You're young and have quite a number of years ahead of you, so learning credit skills now will make life so much easier. I am a lot older than you but learned the best skills within the past 6 years, so retirement is going to be much better than I had thought.  See, these skills work very well for even a fixed income.    

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rzlgq1025

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jwsister - Thank you for your response/advice!

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