Who to pay first?

iVillage Member
Registered: 06-15-2004
Who to pay first?
4
Sat, 09-01-2007 - 12:28pm


Question!! Who do I pay?? I recently came into about 25k and I'm wondering who to pay, the accounts that are with Collection Agencies or the accounts that I still have active (some on payment plans).

Right now I have 3 accounts in collections
Capital One - 10k
Capital One - 5k
BOA - 8k

I also have the following accounts that I've been making payments on.
ATT Universal - 6k
Chase - 8k
BOA -8k

In addition I have student loans totaling 61k that I have been paying.

I'm the validation stage with Collection Agencies and I have not been paying anything on them, does it make sense to pay the ATT Universal - 6k, Chase - 8k, BOA -8k off and save the $$ that I would be paying them monthly (about $800) towards some savings to pay off the collection agencies or do I try to settle for a lesser amount with the collections agencies?

Community Leader
Registered: 03-17-2003
In reply to: car859
Sat, 09-01-2007 - 12:42pm
Here is how I would probably approach the situation:

iVillage Member
Registered: 02-19-2003
In reply to: car859
Tue, 09-04-2007 - 2:01pm

Hi there,


Carolyn has given you some great advice! When you decide what to do with your money, please stop back by the board and let us know. I'm especially interested to see how any nogotiations you may attempt goes for you.


Good luck!


 

Kerri Kerr
Sr. Community Moderator
Home & Garden | Food
iVillage.com

iVillage Member
Registered: 06-15-2004
In reply to: car859
Tue, 09-04-2007 - 4:40pm

Update! I think I'm going to have to put the $$ toward the Collection Agencies, although that will not give me any extra $$ to snowball as I am not paying anything monthly towards those debts!

Community Leader
Registered: 03-17-2003
In reply to: car859
Tue, 09-04-2007 - 4:46pm
You can only do the best you can do.