bottom line i wanna pay off this debt but at the same time i wanna have money for the future to maybe move out or have freedom
i originally had the card with american express but things were so hard financially that i couldnt keep up with the payments and well here i am
my father gave me $20,000 and i currently have 13,000 or something left and dont know what i should do i mean i cant move without a job anyway (because work has been hard to find)
(sigh) i wil speak to credit score people and other financial advisors but what should i do? the BofA people said i can pay 1600 and the rest will be concidered earned income?? i dunno how that all works
and also as of may 1st my credit card account with bank of america was closed
bottom line i wanna pay off this debt but at the same time i wanna have money for the future to maybe move out or have freedomI need serious financial /life advice about my credit?
There are numerous answers;
1) DON'T BOTHER WITH THE STOCK MARKET!!!
2) You would benefit far more if you just paid off the account as it would reflect better on your credit report. Any late payments will remain on your report for only 2 years (Running of Reporting Period - Section 605 [15 U.S.C. 搂 1681c] but at least it will show a balance of $0.
3) If you pay off in settlement, then what ever amount they charge off, you will have to report on your federal taxes at the end of the year (this is where the unearned income comes into play). This is due the an IRS rule that a creditor who charges off any amount in excess of $600 must file a 1099-C with the IRS and the customer. This will reduce your tax refund. Also you credit report will show paid in settelment and list the amount charged off. This will be a potentialy negative entry on your cedit report.
You can pay it off and put your remainng funds into a money market account and use that as collateral to open a secured credit card account. Your credit limit would be whatever you have in your money market. This way, you can access the funds as needed and still have the original amount of money tucked away. Credit Unions are best for this type of account.
JUST DO NOT let the secured credit card fall behind as you will damage your credit again. And remember if you do ever want to move to find work, both the landlord (in some cases) and the employer will want to see your credit report.
Hope this helps answer your question and good luckI need serious financial /life advice about my credit?
You have $13,000, and you owe only $3400, so you should pay off all your debts to avoid high interest.
With the rest of your money, you can go for short-term gain by buying and shorting stocks and then selling or covering once you get 10% gain. If you want long-term gain, buy gold and carefully selected dividend paying stocks.
Hey, what is up with all the thumbs down?? ;(
It is important to pay off all credit card debts ASAP to avoid paying ridiculously high interest like 19.999%.
THEN, gold and stocks are the only safe places to go for the rest of your money. Massive inflation is coming soon thanks to massive government bailouts and money printing.
Money market accounts, savings account, or CDs are useless because they cannot give you high enough interest rate to beat inflation. You need stocks and gold for the long term to do that. I am NOT saying just go and buy stocks indiscriminately, but I cannot go into much details in a concise short answer. Some good places to start educating yourself about stocks are your local library or bookstore (best), www.fool.com, www.nyse.com, and www.morningstar.com. Now is an extremely volatile time in the stock market, so potential for short--term gains, via buying stocks that have been oversold and shorting stocks that have been overbought, can give you 10% gain very quickly, sometimes within the same day or two. You should also make a list of solid companies with high dividends and good fundamentals to buy for the long term once the Dow falls below 7000 again. Hope this helps. Again, I repeat, educate yourself, and know that gold and stocks are the only safe places for your money in this hyperinflationary era we are living in right now.
If they're willing to settle for $1600, you should consider it but get it in writing first.If you live rent free you can't live any cheaper than that. You should put $2000 in a savings account for emergency and the rest in a cd. Don't worry about the interest rate and do not play the stock market
So...you have 13000 just sitting in a bank.
If you are lucky, it's earning a whopping 2% interest.
You have a credit card with a balance of 3400 at 16% or higher interest.
Let me ask you this....would you borrow 3400 at 16% interest just to put it in your savings account so it could earn 2%?
No.
In essence that is what you are doing.
I'd take 3400 out of that 13K and pay the credit card off.
Now that you no longer have that debt, you can take the money you were paying to the credit card company and build your savings back up. In a year or two, you will have your 13K back in the bank.
The only way this works is if you stop using the credit card and do not run the balance up again.
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