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jivasoul

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Payments towards new debt vs. old debt
I have a rental car debt for $1,500 about to go into collections, on top of a delinquent 40k student loan debt. Would it be better for my credit to pay $100 a month to the car debt and prevent it from going onto my record...or let it go onto the record and pay $100 a month to the school loan debt?

thanks, casey

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Is the $100/month what the school loan lenders are asking for in regular payments or is this just a token payment you are making towards the loan?  I know I owed far less than that and they wanted much more than $100/month.

How about seeing how you can trim expenses (fewer meals out, reduce the cable/satellite to the minimum, etc) and maybe even seeking another job to help meet your obligatiions?  That would be the action of someone who is responsible with money and that wouldl show better on your credit than what you are proposing.

FYI--those student loans are nopt going to go away, so you might look into all options for getting them paid off ASAP.

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