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Hi all,

Well, I'm about to pay off all my $25,000 in CC debt with inheritance money. I've been paying it off with a CCCS (Genus) for 2 years now. Here are my questions:

1. Some of the accounts already say "Closed on Creditors request". Presumably because I have gotten lower/no interest rates and min. payments from the CCCS deal. Once they are paid in full, and I close the account, is there any way to change that to say "Closed by Consumer request"?

2. A couple of the accounts also have a line in the Credit Report stating "under management of CCCS". Any way of making that go away once account is fully paid off and closed?

3. Should I attempt to keep any CC's open, if I can keep a good interest rate? No, I won't just use it to incur more debt! Once I'm out, I plan to stay that way, and should have around $1100.00 a month more than I'm used to for building Emergency Fund and investing. (From New Year raises (Yay military) and no CCCS payments)

4. (Possibly off subject for this board) Where should I look to once I'm ready to start investing? Any worth in a couple hundred of Savings Bonds a month, or are they a waste of money? Mutual fund? Straight broker? Make my own IRA? (No matching from the military :( but only 3 years until 20 year retirement!)

I'm 35 y.o. Californian, renting apartment, will just have a car payment yet. (If this info needed for your Foolish calculations :)

Thanks in advance for any assistance :)

Ken!
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My condolences on the loss of your relative.

4. (Possibly off subject for this board) Where should I look to once I'm ready to start investing? Any worth in a couple hundred of Savings Bonds a month, or are they a waste of money? Mutual fund? Straight broker? Make my own IRA? (No matching from the military :( but only 3 years until 20 year retirement!)

First make sure you distinguish between retirement money and money you might need in less than 3-5 years (for a car or a house, for example).

With the retirement money one of the safest things to do both emtionally and financially is to have a certain amount per pay period automatically deducted from your paycheck (or from your bank account soon after pay day) and put into an index fund. Since you won't need it for decades don't fret over daily stock market changes.

The money you'd need in 3-5 years is probably best put into some kind of money market fund.

Regarding your credit questions, I suspect that if you've gotten favorable treatment from the credit card companies as part of the debt repayment scheme then they will insist on keeping the account "closed by creditor."


Good luck,
Michael

PS. For the investing/retirement advice I assumed that after you retire from the military in 3 years you'll work another couple of decades at another career.
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