Have a question about finance?

Should I close my credit accounts or pay off as much as I can?

November 3, 2015
I'm a recently disabled mother who hasn't been able to pay bills after losing a good job. Here's the breakdown: -17 total accts -13 installments -0 revolving accounts -11 open accounts -3 inquiries -8 collections -0 public record Total debt = $18,848 -6 accounts are medical My insurance was not accepted and makes up half the debt ($9501). 2...

Advisor answers

Why not do both? You could close your accounts so that you will not be tempted to incur more debt. However, closing an account does not relieve you from paying what's owed. Also keep in mind that closing an account could lower your credit score. But based on the information that you provided, your credit has already suffered.

Pay as much as you can on the cards. Priority should be given to the ones that are not charged-off or in collections. Complete a budget and prioritize your bills with necessities first i.e. housing, food, ...

Have a question about finance?

Didn't find what you're looking for?

Ask your question and we'll connect you to our network of financial experts for free