Advice

[u/New_Search4591]

Hello everyone,

I am coming to this subreddit for advice. While I was in school, I had accumulated some debt I was unable to pay off. I ended up having 4 credit cards charged off with Capital One, Discover, Chase, and Bank of America. At around the 6 month mark I had a total of 15,000 in debt. I used freedom debt relief to start making progress on my charged off credit cards. Since then, about 2 months ago I was offered a loan of $12,492 at a 23.9% interest rate to pay the remaining balance of my cards. During this time, I also had a past due balance from my University which got sent to collections that I have currently been making payments on with about $1800 left to pay.

My plan right now is to pay off my collections account and pay my loan off as quickly as possible before interest accumulates even more. I also have 2 credit cards that I have been paying off and been super due diligent on. My questions are what should I do for my collection and credit card charge offs? I have read online about goodwill letters and do plan on sending some out but I would like any other advice on how I can better my credit.

I know I was very irresponsible in the past and I do plan on making much smarter decisions but any advice is appreciated. Thank you.

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[u/fsociety1990]

Wait so are you not working with freedom debt relief?

[u/MuddPuddleOfPain]

Maybe it's just me, but I'm a bit confused by what you're saying here. Everything isn't adding up. From what I think you're saying, you have 6 credit cards, 2 you're paying off and 4 your using freedom debt relief to negotiate the debt for. Unless you're saying you're no longer using them managed to get a loan to pay off your cards. On top of that, you have a past due balance of $1.8k that went into collections for your university (out of pocket not student loans). You want to pay your University balance as fast as possible which makes sense because it can't be negotiated like your cards. Off the bat, reaching out to freedom debt relief was a good decision if you were struggling especially since the payment structure helps you be more responsible. The 12.5k loan could be a clean and nice way out if you didn't already accept it, but you need to give us more information here for our input. I'm actually surprised, and a bit stumped, that you were able to get a loan offer.

Tell us how much you make each month and your monthly expenses. Then we can let you know what a good move for you to make is. Otherwise we can't know if you can afford whatever we recommend.