Pay Down Credit Card Balances or Save to Settle a Charge Off?

[Anonymous]

I live in Illinois

[Anonymous]

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ThaChosen1 wrote:

I live in Illinois

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Yep, 5 year SOL on CCs.

First, don't just start sending them money every so often. That will reset the SOL, and they'll likely eat it up in fees and interest and what not. Wait until you can make 'em an offer to PFD.

Your CCs are nearly maxed, so you are risking a ratejacking. That will push you even further behind, so were I you, I would fight the balances down on the CCs.

If you can get them both under 50% util, then you should be in a position to try and demand a CLI and APR reduction. Those would give you even more breathing room. More breathing room means better FICOs and a chance you can get more CCs and a higher overall CL. If you could pay things down, get more overall CL, then you might have enough to take a cash advance out of a CC, use that money for a PFD, and stay under 50% util. 30% is better. 1-9% is ideal.

If the CA is writing, just file everything. If they are calling you, Caller ID and an answering machine are your friends. If they are making nasty or threatening statements on your answering machine, jackpot. See my post on Abusive Phone Calls.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=21764

[Anonymous]

Thanks for the reply's... I am going to try to pay down my CC balances first

Should I try to pay off the higher interest card first, making minimum payments on the card with the lower rate, until I get the card with the higher rate paid off?  Or should I try to pay them both down under 50%?

[Anonymous]

I think since both are pretty close, in util, I would try to pay them down at about the same rate. Just to keep the math simple, split up what you're paying on the two in a 2 to 1 ratio.

If you have an extra $300 to put on the CCs, pay $200 to the $3400 CL CC, and pay $100 to the $1500 CL CC.

[MercyMe]

  Been there.  Done that.  And have to tell you ... what Noah says, do. 

[MercyMe]

ThaChosen ... you said that last payment was in 2005, is that payment after charge off, or last payment before charge off, as in DOLA? 

[Anonymous]

That was the last payment before charge off.