What is the best way to settle debt?

The best way to settle debt.?

• I am 25 and want to be debt free. I have over ten thousand in debt. I want to start settling with debt collectors. It been about 5 years since i paid a dime. I want to buy a house in 15 months.What steps should I need to take to be debt free.What should or Shouldn't i do when talking to collectors. I know i am suppose to get a written agreement saying the acct# and how much I settle for.In the letter can I state that they would contact the bureaus and state of paid in full. How long does it take for credit score to fo up and how long take to fall off. Any other advice will help me.. When I settle with a collections does hurt credit card score.

• Answer:

  Ok, man if you are serious you need to tighten your belt. So, you have 15 month 1. You need to have stable income ( I hope this one you have) 2. You need to look through your spending and learn to live on much less that your are spending now. 3. After that, find out how much you can pay every month for your debt. If to calculate yours it should be $667 a month, taking 10000 debt as the basis. NOTE: You should check with your creditors how much you really owe them. They have this disgusting habit to put some penalties on your head. so, if you do have penalties, it will be more than 10.000 4. Call all your creditors up. Be serious. Never tell them that you will pay than you can. Set up the payment plan and start paying off. It takes less time for your score to go down, than to go up. The more realistic goal for you will be to pay of in 24-28 month( actually, depends on your income) Good luck. Here some more tips for you: