Is bad credit due to consumer debt or medical debt?  

If you are owed money on a judgment you will get a call if the debtor wants to get the lien released.

The more time you give a debtor the less return of your cash you will get!

You have to have it served on both the debtor and the employer or bank and then the money is impounded and goes through the courts.  

Now, I would not simply forgive the debt or allow them a free month.

Nothing has changed the truth of that statement in at least 150 years in America, and it has been tested through worse pandemics than this one.Especially those with NO debt or very little debt on their lower end portfolios in the low value areas of the US   

For example, do they have 15 store credit cards and tons of credit card debt? Or

So, is it better to pay off the loan and make 5% on the cash used to pay down debt?  Or

My parents are saying its in inconsistent and unreliable  income, but I think that's false because I'm young and as long as I don't debt or liabilities, I can learn to cope and network to find deals in any scenario.  

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).