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Debt that has been already charged off by the bank. PLEASE HELP !

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Anonymous
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Debt that has been already charged off by the bank. PLEASE HELP !

I am trying to help my wife with her credit, she has 2 credit cards that the bank has already charged off, what is my best plan of attack do  I call the banks directly and work out a payment plan or is it to late and if so do I just start to reestablish her credit by cosigning for her ?  Please any advice would be helpful

Message 1 of 4
3 REPLIES 3
RussianPassion
Regular Contributor

Re: Debt that has been already charged off by the bank. PLEASE HELP !

What is it with wives and charged off credit cards... I am in the same boat. 2 Capital One cars that are charged off... Lets see what others say.

Message 2 of 4
Anonymous
Not applicable

Re: Debt that has been already charged off by the bank. PLEASE HELP !

That sounds like a plan, I hope to get some responses soon , so I can got on with this and clean up her credit.  Thanks for the support.

Message 3 of 4
llecs
Moderator Emeritus

Re: Debt that has been already charged off by the bank. PLEASE HELP !

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

 

 

The first thing you want to do is to find out who owns the debt. If you pull all 3 CRs, a debt that is CO'd, but hasn't yet been sold to a CA, will report a balance and will typically update monthly with a slightly higher balance (due to interest) and will often add a late. If this is the case, then try for a PFD. Quite often a CA will call and bug you for that debt, but if they don't own it, then ignore them.

 

If the debt has been sold, then you'll find that the CO stopped reporting and would report $0 with maybe a comment that it is a paid CO. If this is the case, then they likely sold it to a CA. For the CO, the only thing you can do is to send a GW. If the CA is reporting, then mail them a DV. If they verify and you agree, then send a PFD to that CA.

 

Make sure you have the $$$ set aside to pay in full if you had to before doing anything (assuming your state's SOL had not expired). If not, save up before doing anything. There's always a chance they could reject any offer by you and sue for the full amount instead. Also, don't enter into a payment plan. Why? 1) it prolongs the pain. 2) they'd have your banking info, 3) it extends the damage to your credit, 4) it costs more with added interest, and 5) some OCs/CAs have been known to go back on their agreement with you. The only time I'd consider a payment plan was if I was under immediate risk of being sued and I didn't have the $$$ to cover the balance.

 

Keep everything in writing.

Message 4 of 4
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