Paying off debt – FICO Considerations : CRedit

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I am helping some family friends pay off their credit card debt. You have $ 9,000 in the bank and save $ 1,000 a month after bills and credit card payments.

His FICO score is around 600 and he owes $ 18,000 on a high-interest card that he pays on. He tries to balance the transfer on a 0% card for the first 18 months, which costs 3% of the balance.

Her FICO score is in the bathroom as she has 4 or 5 credit cards that owe $ 16,000 and is about 3 years behind schedule. She has various collection agencies that offer her to settle around 50% of the balance. Is this a good idea? How long do these arrears stay on her report once she settles down?

She has other options: https://fcaa.org/debt-counseling/ offered to negotiate for her and offered her a plan of 33 payments at $ 371 for a total of $ 12,243. I don’t know if this plan will help your creditworthiness any more than coordinating directly with the collection agencies.

These guys are thrifty and are learning the game. They have 2 4% auto loans for about $ 36,000 that they also pay. I wish I could have spoken to them before they bought their cars, but it is what it is. Any advice directly related to eliminating debt / improving credit scores would be appreciated.

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