Best way to pay all of debt

kwinks · ‎07-07-2015

Sooo life has just given me a second chance. I just received notice that I will be getting an inheritance, I currently owe $30,000 on credit card. What is the best way to pay this down, all at once or 6000 per month for the next 5 months? I used to Fico Simulator on this site and didn't show that much of a jump in my credit score so what do you guys think would be the best way of going about this. I also have 2 collections of my report, one owned by AFNI for an old ATT bill that was last reported on May 2015 for about $600....the weird thing is that is says the date opened is April 2015 which is not true as I have been out of the country for the past 2 years (can i dispute this or am I reading the credit report wrong?) and a collection with Amsher Collections for a Tmobile bill for about $250 date opened september 2014 and last reported october 2014. Would it be best to pay the collections off first

Thank you guys!

stellar · ‎07-07-2015

I don't think there is any negative effect of paying everything off at once.

Find out first if the collections belong to you , and then pfd.

Anonymous · ‎07-07-2015

Highly recommend saving yourself as much money as you can by negotiating with those Colection companies and also try to to ptd. With them any deletions will help the most as well as negotiations to save money

Anonymous · ‎07-07-2015

@kwinks wrote:
Sooo life has just given me a second chance. I just received notice that I will be getting an inheritance, I currently owe $30,000 on credit card. What is the best way to pay this down, all at once or 6000 per month for the next 5 months? I used to Fico Simulator on this site and didn't show that much of a jump in my credit score so what do you guys think would be the best way of going about this. I also have 2 collections of my report, one owned by AFNI for an old ATT bill that was last reported on May 2015 for about $600....the weird thing is that is says the date opened is April 2015 which is not true as I have been out of the country for the past 2 years (can i dispute this or am I reading the credit report wrong?) and a collection with Amsher Collections for a Tmobile bill for about $250 date opened september 2014 and last reported october 2014. Would it be best to pay the collections off first

Thank you guys!

For a collection account the "date opened" is when the collector received the account, not when the original account was opened by you.

CH-7-Mission-Accomplished · ‎07-07-2015

I would contact ATT and Verizon and try to settle these bills directly with them and have them pull them back from collections. I did this with ATT and it worked great. I just made a huge deal out of the fact that I wanted to pay but did not want it on my credit report. In my case it worked great. It's sure worth a try.

People will tell you that the OC can't collect the bill if they have sold it. This may be technically true, but if the OC wants the debt back, the CA sends it back. No questions asked.

Use your out of country status or some other story and whine a lot!

In terms of your credit card debt, the sooner you pay it off, the sooner your scores will jump due to reduced utilization. No point paying interest for 6 months on any of that debt.

Good luck. Grats on the windfall!

RobertEG · ‎07-07-2015

I would first make a PFD offer directly to the debt collector.

If they accept, there is no need to take the around-the-barn path of first attempting to get the OC to terminate any assigned collection authority before paying the OC.

That approach requires that you first get the OC to terminate their business relatinship with the debt colllector, and then after paying the OC, getting the debt collector to then delete their collection. There is no requirment under the FCRA or FDCPA that they then delete..... you must pursue deletion based only on the CRA reporting manual instrucition that a debt collector detete if their collection authorty has been terminated and the debt remains unpaid. That alone could become its own hassle.

Additionally, if the debt collector has purchased the debt, you cannot pay the OC unless they were to re-acquire the debt, which is extremely unlkely.

I would only contact the OC with an offer to pay them if the debt collector has first refused to accept a PFD.