30 with bad credit

[Anonymous]

I have recently turned 30 and sadly and now realizing just how bad off I am financially. And before I do something drastic like filing bankruptcy I would like some advice. I have not checked my scores recently but as of 1/20/12 my Experian was 430 and as of 5/21/12 my Equifax was 542, never knew my TransUnion. What I have in my opinion is a lot of unpaid small bills which vary in age. As far as what I currently owe I have a cash advance from Extra Funds in the amount of $760 (original loan amount was $390), cash advance from 123wages.com in the amount of $289 (original loan $200). A medical bill which has been sent to collections in the amount of $135.00, this bill however were for services I was not aware I was receiving and I did not authorize. I have already been in touch with the doctors office and explained why I was not responsible and even asked if they had any documentation where I signed agreeing to the services and was actually hung up on. I have a bill due to the state of Maryland for $203 for a school bill when I never attended the school. I do know I need to send for verification on this to start on getting this removed. I have bill in collections with Afni for Bellsouth phone service I had back in 2005 in the amount of $337.55. Actually have considered asking for verification to see if I can get this one wiped out due to age. I have a Univ. of Phoenix bill for $4000 which is in collections. However, I do not feel I should be obligated to it as it was due to my not passing 2 courses. I was not told upfront that a failing grade would not be paid with financial aid and basically the school sucks. I have since gone on to earn my degree from a REAL school. I currently have a Capital One Secured card with a $200 balance which is current as well as a First Premier card which has a balance of $250 which is current. I also have student loans of about $23,000 which are currently in deferment. My past is checkered with charge offs and delinquencies most of which appear to have fallen off my report (last report pulled 1/12). Where do I begin to get my credit in order?

[cadavis0609]

Okay Peachy, this may not be the advice you want but its the advice you need to hear. You start with renewing your perspective on personal responsibility. I read through your post and there were at least 3 instances where you blamed someone else or said you don't feel like you owe the debt because they didn't provide your signature or you didn't pass your class and your financial aid wouldn't pay. You took the class, you didn't hold up your end of the deal by passing the class, and therefore you owe the debt. We CAN help you, but you have to make a decision and a commitment that this is a new beginning where you will be personally responsible and then, one by one, we can work together to setting you on the right track and conquering these debts and credit problems one by one. You can do it, but it has to be YOU.

[cadavis0609]

I should also add that the best place to start is by reading the pinned threads at the top of this board. They are a fantastic resource.

[Anonymous]

I accept the fact that I am responsible because I have been irresponsible in many instances.  And I am ready and completely committed to turning my financial situation around.  Any guidance you or any others could provide is greatly appreciated.

[thankfulheart]

I wouldn't say you are in bankruptcy-level trouble based on what you've posted. Here's what I would do:

1) never pay anything late EVER again. NEVER.

2) never take another payday loan EVER again. NEVER.

3) if you can't pay cash, don't buy it.

4) if you do use a CC (i.e gas), pay it off immediately.

5) breathe

6) take responsibility and accept that there are some consequences for poor choices

7) google "hipaa process" and learn how to use that for anything medical-related

8) get a notebook or a spreadsheet and list each debt, when the DOFD was, how much is due

9) starting with the smaller amounts, PFD, PFD, PFD

10) anything that is already paid off, but reporting negatively, GW, GW, GW

11) see if you can work out payment arrangements for larger debts in exchange for removal from your CRs

12) again, accept that there are some consequences for poor choices and time is your BFF if you repeat numbers 1-6 ad infinitum

bonus) don't diss UPX as there are many successful students from their programs. Me included. It makes us cranky when people who failed their classes tell us we don't have "real" degrees when we worked very hard to be successful in our programs. My Master's is serving me quite well, thankyouverymuch.

bonus #2) don't give up and try not to be discouraged. It's very easy when the process starts to draaaaaagggggg out and you feel like you've spent a fortune on postage. But, if you look at my scores, you can see that there is hope and you can do this.

[Anonymous]

First of all I apologize if I offended you with my mention of University of Phoenix as this truly was not my intention. 

1)I have set up all possible accounts to be paid via automatic payments with at least there minimum payments to avoid late fees and reports to CRAs.

2)Payday loans have been removed from my mind prior to January of this year I had paid payday companies well over $5,000 in interest and realized it is far better to save and pay cash than to use those. I have also been volunteering to do more overtime at work when unexpected expenses arise to cover them.  

3) I have taken the two cards I have out of my wallet because the utilization on both is too high and I have to bring those balances down first.  Although they are are smaller amounts I still plan to double or triple up on the minimums to try and establish a positive payment history.  

4)My utilization overall is 87% right now, what I am trying to figure out is if my student loans are being factored into that amount even though they are currently in deferment. 

5) I am working on my goodwill letters and actually planning to post them here for feedback.

Thank you for all of the advice it is all well received and I will begin working on those PFDs today.  Also truly am glad to hear Univ. of Phoenix worked for you.

[Shogun]

Looks like you have a nice plan of attack.  

[thankfulheart]

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@Anonymous wrote:

4)My utilization overall is 87% right now, what I am trying to figure out is if my student loans are being factored into that amount even though they are currently in deferment. 

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Looks like you are on the right track.  Student loans (or any installment debt) do not count in your utilization; ONLY revolving debt is counted.  And, it's based on percentages, so you will see your score go up as your balances go down, regardless of your credit limits.  That's the easiest way to get a boost.

[Anonymous]

Ok thanks that was a big worry of mine. I thought my loans were included in my utilization.

[jordanmedical]

Haven't read this full thing but wanted to comment on AFNI. Had an ATT bill that was with enhanced recovery, they never verified, deleted and sold to AFNI. Just sent them a DV. Called ATT and they have no record of the acct (from 2006) and even allowed me to sign up for new account with no deposit or upfront fees. Wondering if AFNI can verify if original merchant has no records.

Definitely DV them first, if they verify, I've read they are fairly easy to PFD or even settle.