Settling debts yourself

iVillage Member
Registered: 12-31-2010
Settling debts yourself
16
Mon, 03-19-2012 - 10:33am

I am going to relate a true story, not to give advice, but to show you alternative ways to think about debt if you are really in a bind.

I know we always say to take care of your four walls first - food, health, shelter, clothing/transportation (within reason) first, then pay debts as you have money available.

#Marie

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iVillage Member
Registered: 11-14-2008
Mon, 03-19-2012 - 11:26am
Great story. Love do it yourself ones. So motivational. I am scheming ways Marie to work a little after the baby and pay our truck loan off sooner. hehehehe
iVillage Member
Registered: 10-01-2008
Mon, 03-19-2012 - 12:24pm

It's nice that it worked out for them.

Norma


"Patience is the best remedy for every trouble"- Plautus


Community Leader
Registered: 08-25-2006
Mon, 03-19-2012 - 1:41pm
Thanks for sharing! Still shocked their score is so high.

My DD26 has a better score than I do. Go figure...
Serenity
iVillage Member
Registered: 12-31-2010
Mon, 03-19-2012 - 8:25pm
A credit score has very little to do with the low amount of debt you have, but instead the amount of credit you have available.
#Marie
iVillage Member
Registered: 05-09-2002
Tue, 03-20-2012 - 1:28am

Those scores seem crazy. I am very happy things worked out for them. With that being said I find the FICO system very unfair and I know people with bks on their history with much higher scores than me and I have had one 30 day late payment in the past 5.5 years and I am still not at 700. (I have some old student loan late payments - on one loan but they break it up and show many late payments due to the money being split into all the consolidations. That was about 6 years ago. Can't wait for that to come off.) I think what hurts about it is your FICO determines so much - your car insurance, your interest rates, if you can buy a home, etc., etc. So paying as agreed is almost worse than settling as agreed? Also, you have to PAY for your own FiCO scores but everyone judges you on them. Ridiculous. Can you tell I hate the FICO system?!

Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Tue, 03-20-2012 - 12:01pm

iVillage Member
Registered: 05-09-2002
Tue, 03-20-2012 - 2:54pm
I'm sorry to hear you have some of the same odd things on yours. I think my friend thought I was just bad about paying things until one day, her credit dropped exponentially . She always pays things on time. Odd things do come up. It is a crazy system if those who settle have way better credit than those who pay 100%. After all, the FICO is used to see how risky it is to lend to you...
Community Leader
Registered: 08-25-2006
Tue, 03-20-2012 - 3:40pm
Don't get me going on the FICO system, either. Remember my son who couldn't rent an apartment because he had no score? And couldn't get any credit because he had no score. And this is with a work history of a two or three years with one employer. About as long as possible with someone that young. Made no difference that all of his bills were paid on time, etc. and no debt.

God forbid someone pays cash for everything.
Serenity
Community Leader
Registered: 07-26-1999
Tue, 03-20-2012 - 3:56pm
I have to agree Serenity, people complain and complain about the state this country is in, but they get punished for actually living within their means, not taking on debt, etc. It doesn't make any sense at all.
Photobucket
iVillage Member
Registered: 05-09-2002
Tue, 03-20-2012 - 6:44pm

So agree with both of you.

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