SCORE UPDATE (+200)

[Anonymous]

D@mn

That beats me=

1638 minutes 600 points= 2.73 points per minute.

Message Edited by Timothy on 06-10-2008 09:43 PM

[Kat]

How much cash did you have to come up with to PFD and reduce util to 1%?

[adamseve]

WOW!  I'm praying for this type of activity with my scores in 30-60 days.

Tell me, did you have a BK, tax liens, or judgments?

[aftermath]

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@adamseve wrote:

WOW! I'm praying for this type of activity with my scores in 30-60 days.

Tell me, did you have a BK, tax liens, or judgments?

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No BK, No Liens, No Judgements. Just 9 years worth of late payments, delinquents, derogs, and charge offs that have almost all been "corrected".

Message Edited by aftermath on 06-11-2008 12:38 AM

[aftermath]

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@Kat wrote:

How much cash did you have to come up with to PFD and reduce util to 1%?

---

$15,000 total. I sold my 2007 Audi A6, bought myself a used 2006 Honda Civic (it worked out for the better. gas prices were killing me anyways. needed a more fuel efficient car), used the leftover cash to PIF/PFD.

I guess when you have a CO for $5000, they'll gladly PFD, and they'll also gladly tell the collection agency they hired to TAKE A HIKE! I made it specific in my PFD letter to delete ONLY the lates and remove the CO status, and not the ENTIRE account like some have done. I told them that they must adhere to these conditions or they won't get a single penny out of me. So basically I turned a $5000 CO to a 9 year CC with PERFECT payment history (paid in full/pays as agreed/account closed requested by customer/$0 balance).

Some other CO's $1000, $2000, same strategy as above.

And the remainder I used to pay off all my current credit cards, and down payment on the new used Honda Civic.

It was not an easy decision to make. I had many sleepless nights contemplating if this was the right thing to do, such a huge decision. But in the end, it was a sacrifice well worth it.

I think it was an ego issue of not wanting to let go of possessions that I just didn't absolutely need, which got me into credit card debt in the first place.

I also did some simple math... I call it the 10 steps to debt relief (example scenario):

1) Purchased $2000 Gucci coat with credit card.
2) $2000 Gucci coat just sits in the closet after wearing maybe twice.
3) $2000 just sitting in your balance gathering interest.
4) You worry and stress about how you will ever pay that off.
5) You might possibly default on payment.
6) You don't absolutely NEED the coat.
7) Sell the coat.
8) Use money to pay off credit card.
9) Problem solved. You won't miss the coat.
10) Learned your lesson. Won't repeat same mistake.

Just replace "coat" with whatever caters towards your situation.

Message Edited by aftermath on 06-11-2008 01:11 AM

[Kat]

I thought your amazing score increase probably cost a pretty penny.  It's true what they say, "money talks". 

I appreciate your candidness when describing your decision to sell the Audi.  I think you made a very wise choice!

Congrats!

[rom828]

Super, super congrats, aftermath!

I really respect and admire your decision to sell the car to address your debts. Wow!  I'm very happy for you that such a sacrifice was rewarded with the baddies dropping with relative ease!

What a lesson to everybody that's ever lived above their means via plastic!  Certainly if you're ego is going to be tied to anything, it's better it be tied to an 800 credit score than a car!!

Saw an interesting article this week that corresponds to your 'coat' story:  spending just $10 a day on a credit card , ie: coffeee, lunch, cigs etc  (or basically just spending $300 a month that you dont have!)  that  you dont pay off becomes after 5 years a debt of $36,259, assuming 26% interest on the CC.  The same $10 a day, or $300 a month, invested to get a 5% yearly return would result in $20,402 in the bank. In ten years even more drastic...$167,470 in credit card debt or $46,585 in the bank.

The article did go on to say that of course interest rates vary, and you have to pay a minimum on a credit card and if you let it go it would get cut off, but the point is that small amounts added to debt result in far more debt than people realize.

And your story is so encouraging to those of us that've been battling OC's, CAs etc as we seek to rebuild.

It's gotta feel great to have those baddies drop off....and you sure were smart in the way you handled those!....and to also reduce utilization to 1%.   It's been somewhat of a quandry to me as I've been rebuilding, that to actually be debt free would not give me a good credit score, but I've more or less accepted that as long as credit scores play such an integral part in our work and fiscal lives, I'll have to plan on carrying a small amt of debt to keep score at a maximum.    I'm about 6 months from that point (have 1  $2400 BT on Amex, other accts are nominal and usually PIF)  and I cant wait!  I'm also working on correcting some misreporting on a couple of old accts  which should also help.

My goal is to have myfico report say "there are no negative factor affecting your score"!!

Congratulations again...and thanks for sharing!!

Message Edited by rom828 on 06-11-2008 02:05 PM

[adamseve]

Your story is incredible.  Like the others, I'm every encouraged by what you did to get out debt and clean up your credit.

It's tough letting go sometimes of those material possessions, but at the end of the day, we usually come out better than we were before.

Take care.

[aftermath]

thanks rom828 and adamseve, and to everyone else who have commented and replied.

I can't agree with you guys more.

I believe it's all about setting your priorities and realizing what is more/most important, especially for your future.

True, I don't drive a luxury car anymore, and it does bum me out to have to turn a key when i used to just hit a button to start the engine. But what good is a car when you can't afford to put gas in it? Yes, I now drive a civic, but I can now proudly fill the tank in full and don't have to worry about bill collectors calling me at work, or my mailbox being flooded with intention to sue letters from CA's.

Material possessions come and go. They are temporary means of pleasure.

Someday we will all get to that financial level that we all have been shooting for. And once there, with our now PERFECT credit, the world will be our oyster.

I am quickly climbing the corporate ladder, and hope to have a 6 figure income one of these days. But what good is a 6 figure income if you can't get approved to purchase anything?!

Basically, don't bite off more than you can chew. And if you can't chew it, spit it back out, don't attempt to swallow it. You will choke.

Message Edited by aftermath on 06-11-2008 08:14 PM

[butterflygirlinluv]

Hey Aftermath!

Congratulations!! Very impressive and gives me lots of hope!!

I do have a question for ya, as I seem to be in the same boat YOU WERE IN! I have a couple of CO with Collection Agencies.

 Did you send the PFD letter to the OC or the CA?

Also, did you pay the full balance due or a percentage of the debt owed?? And did you state that in your letter?

Please help!! THank you!!