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Valued Member
destinyschild
Posts: 30
Registered: ‎06-02-2007
0

Credit Crisis!!

I currently have a real credit dilemma! I have a credit card with a balance of about $30,000 and several other cards with little or no balances. This one card is keeping my utilization around 95%. Now here's the catch... The account is charged off and continues to grow interest. My three scores range from 500-593. I have read on this forum that the FICO simulator is not very accurate but it tells me if I pay off all credit card debt within 24 months my score should increase into the middle 700s. Problem #2-I am a student with a limited income and can't really afford to pay and extra $600 a month on this credit card. By the time I graduate and begin to make enough money it will be time for this card to drop off my credit report.
What do I do?
Valued Contributor
Boswd
Posts: 1,065
Registered: ‎04-26-2007
0

Re: Credit Crisis!!

You need to call the credit card company that has charged you off and see if you can work something out, especially since it is on the fast lane to a CA.   it's going to continue to draw interest, over the limit penelties etc.   Call them and see what you guys can work out and hopefully you get them to stop charging iterest and get into an affordable payment plan.   As of right now the last thing you need to worry about is your score, you have a $30,000 credit card debt that is only going to get bigger.   That should be your main focus,  don't even worry about your credit score right now.   Call the credit card company.
Valued Member
destinyschild
Posts: 30
Registered: ‎06-02-2007
0

Re: Credit Crisis!!

Just contacted the credit card company and was informed that a collection agency was "hired" to collect the debt about a week ago but OC still owns the debt. The VP of Credit Card Operations told me that  its still there choice if they accept the settlement or not and there is no way that I can just pay them and bypass the CA. I was also told that nearly half of that $30,000 is interest and fees. I am hoping that I can somehow negotiate a settlement and get the account removed from my CR although it is one of my oldest accounts.
It is I am lost. What do I do?
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007
0

Re: Credit Crisis!!

Post all your CC balances, CLs, APRs, and whether they have any lates or other adverse reporting on them.
 
Valued Member
destinyschild
Posts: 30
Registered: ‎06-02-2007
0

Re: Credit Crisis!!

Well Here goes...
 
CCC                              Balance          APR           Limit                 Open
 
BOA                               33,297            27.99        18,000            chargeoff / sent to CA
Cap1                              0                   16.99          1,000            closed by consumer-no lates
Chase                            2,500              28.99         2,794            chargeoff
Chase                            5,750             17.49           5,000           chrgeoff
Chase                            0                     9.9            1000            closed by consumer-no lates
Discover                        0                   10.95           1000           closed by consumer-no lates 
Sams                             0                   12.99            600           closed by consumer-no lates
Walmart                         0                     9.9            200             closed by consumer-no lates
HSBC/Best Buy           700                  12.49           600           chargeoff
HSBC                           719                 19.98           800           chargeoff
HSBC                            0                   14.99            300          open since 03/07(rebuilding credit started)
Valued Contributor
Boswd
Posts: 1,065
Registered: ‎04-26-2007
0

Re: Credit Crisis!!

that is just shy of being $43,000 and climbing each month.  in credit card debt not to mention your upcoming student loan if you have one.   Whewwww.    How old are you if you don't mind me asking?   The reason why I ask is,  though I would never recommend BK or wish it upon anyone,  if you are young and your are still in school you may qualify for Chapter 7.   Starting out your life after school being over $43,000 in debt,debt  that is all going to be sent as is sent to collections, with the possibility of being sued if you can't make aggrangments on them is a horrbile way to start your life.
 
I think you should at least explore the possibilities of it.   yes BK is never good but it's also not the end of the world either.   Even if you don't go for BK  your credit score and report is going to be damaged for much longer than the 7 or 10 years that  the BK stays on.    I would consult with a BK attorney and just hear him/her out. 
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007
0

Re: Credit Crisis!!

Valued Member
destinyschild
Posts: 30
Registered: ‎06-02-2007
0

Re: Credit Crisis!!

Well the BOA is not open, its just accruing interest. HSBC is open and I keep the utilization between 1-9% on it.
Valued Member
destinyschild
Posts: 30
Registered: ‎06-02-2007
0

Re: Credit Crisis!!

I filed BK two years ago but the judge dismissed my case so I am stuck with the bad effects and the debt. What do I do??? 
Valued Contributor
Boswd
Posts: 1,065
Registered: ‎04-26-2007
0

Re: Credit Crisis!!

why did the judge dismiss your case?

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