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Advice on Paying off multiple collection accounts

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Alpha123
Established Member

Advice on Paying off multiple collection accounts

Hello everyone. 

 

I have 10+ accounts in collection stemming fromgloss of income in 2008. These are mostly credit cards and department store cards. The amounts vary from 500 to 6,000. 

 

My question is: I have a large cash bonus coming up and want to pay off as much as I can. How should I prioritize what to pay and is lump sum settlements the best way to go?

 

Also, is there a legitimate service that can help me through this? 

 

Appreciate any feedback. 

 

Thank you. 


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Message 1 of 9
8 REPLIES 8
RobertEG
Legendary Contributor

Re: Advice on Paying off multiple collection accounts

Is your goal simply to satisfy the debt, or is CR deletion also a main priority?

Very different plans pertain to each.

Message 2 of 9
Shogun
Moderator Emeritus

Re: Advice on Paying off multiple collection accounts

Actually it's better if you do it yourself.  You will want to look at a few things, read up on them and then formulate a plan of action.  

 

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations
What Steps do I take, DV, PFD or GW
Credit Scoring 101


This will give you an idea of where to start. Good Luck!

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Message 3 of 9
Alpha123
Established Member

Re: Advice on Paying off multiple collection accounts

Sorry. Should have listed goals/objectives. Looking to get out of debt, improve credit score, buy a house and/or car and have decent credit like normal people so I can apply for credit when necessary. 

 

I have a hh income of $120k and have been cash based since 2008 (post debacle). 


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Message 4 of 9
Alpha123
Established Member

Re: Advice on Paying off multiple collection accounts

Thanks for the info. I will do some research. I just know its going to be a bunch of administrative work. 5 years, 10 accounts is a n

Bunch to track down because the debt has changed hands so many times. It sounds like elbow grease and patience is my only way out? 


Starting Score: 657
Current Score: 657
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Message 5 of 9
mspiggybank
New Contributor

Re: Advice on Paying off multiple collection accounts

I'm interested in seeing the responses you get. I'm in a similar position and I decided to DV the ones that I can afford to pay in full, and hold off on the others until I save enough to send DV and/or PFD letters. Not sure if that's the best way to attack it, I'm open to other ideas. I don't have any immediate plans to apply for a mortgage/car loan so I can take a little more time. My goal is to get everything cleaned up, but I'm afraid to risk poking CAs that I can't afford to pay off right now (if it comes to that). Since it sounds like you have cash to pay things off, I don't see why you couldn't attack everything, but I'm sure the experts will weigh in. Good luck with your credit journey.
Message 6 of 9
Alpha123
Established Member

Re: Advice on Paying off multiple collection accounts

Thanks for the feedback and support, mspiggy. My issue is a couple of these are in court and I've been continuing them long enough. So, I'll have to pay two of the accounts very soon. 

 

I'm looking to get a car in feb/2014 and a house in feb/2015 so I'm not exactly I a huge rush relatively speaking. 

 

I need to understand more about the DV concept. I'm presuming the debt is valid sincethese huge CAs are heavily pursuing me in court. 


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Current Score: 657
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Message 7 of 9
guiness56
Epic Contributor

Re: Advice on Paying off multiple collection accounts

A DV is supposed to be sent within 30 days of receiving a dunning letter from the CA.  Once they receive the DV, they cannot continue collection activity until they validate.  There is no time frame in which they have to validate, they just have to cease collection activity.

 

Only one state that I know of, TX, allows for a DV to be sent at any time and requires a response within 30 days.

 

If you do not remember getting a dunning letter I would still send a DV.  They don't need to respond if they previously sent a letter.

 

Make sure you can pay the debt in full before sending the DV.  If you can't you risk getting sued unless the debt is beyond your states SOL.

 

If it is beyond SOL, wait for the validation, then send a PFD.

 

In some states it is illegal for a debt that is beyond SOL to be pursued for collection.  In others, if the debt is beyond SOL, the debt is extinguished.  Knowing your states laws would be a great benefit.

 

No, the debt does not need to be valid for a CA to pursue you.  Some are nortorious for trying to collect on debts the consumer does not own.

Message 8 of 9
mspiggybank
New Contributor

Re: Advice on Paying off multiple collection accounts

I don't know much about on-going court cases, but I do know (from reading the boards) that a lot of people have had success in getting things removed from their report by requiring the CAs to validate the debt. As guines56 said, there are some really shady companies out there who prey on people who are in debt. Search the board and read a lot about validation. A lot of times debts are sold multiple times and the agencies will continue to try to collect even when they don't own the debt anymore. There's a lot of nasty practices, so it seems like everyone agrees to make them validate first. As I said in my first post, I'm only sending DV letters to people I can afford to pay in full because if the debt does come back valid, I want to be able to offer to pay it in exchange for them deleting it from my report.

For more info on DVing try this thread or do a search and read a bunch of different threads. http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Debt-Validation/m-p/7133
Message 9 of 9
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