Paying down medical debt- need answers!
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|Sun, 03-12-2006 - 11:41pm|
I spent the last nine years with spotty employment history due to a disability. In that time I racked up alot of debt, mostly medical bills but also some bills I was unable to pay while not working. Thankfully I am now stable on a new medication and have been steadily employed for the last year, though I don't make a whole lot, and I'm a single mom. I am now in the process of trying to rebuild my credit.
I have two student loan accounts, one of which is in good standing and one which I am behind in my payments on. I have been paying that plus extra every month, and expect to have that account in good standing in about a year and a half or less. I have also been slowly paying off collection agencies. I currently owe just over 8000$ to seven different collection agencies. I figure I can afford to pay at least 100$ a month right now towards that. Maybe a little more. So my question is: would it be better for my credit score to send a little bit in to each one each month, or pay them off one or two at a time? Either way I figure it will take me about 4 years to pay it off. Once I get my student loan back in good standing I can shift the extra I've been paying them each month into these collection agencies instead. Also, once my collection accounts are paid off, about how long will it take before my credit score reflects that? TIA.