I know the feeling. Mine has platuead out somewhat. Like you it took a while to get into this mess, so it is taking a while to dig out. I won't hit 700 for years and years but with my file as thick as it is I think 650's are fairly easily accomplished sometime in 2018 for me at least. I just hvae to pay off the two bad ones left on my file. keep the faith and keep to AZEo you'll be fine.
I need to get like you. I only thought it would make since to stagger CD's in sums like 50000 each year for 5 years. I have a long way to go but I like your idea: it not in a mutual funds(which cost to cash out); illiquid assets like realty or timber. If you need some funds they are there and you are not cracking open a gigantic CD and having maturity issues. NFCU have some I will look at next month.
@Anonymous wrote:Yep!
I've analyzed probably 600 people (Facebook and in real life) and 80%+ of them would never have had a single delinquency if they had just 6 months of emergency minimum payments to cover an injury or illness or job loss/change. But once you go 30D late, it all spirals and avalanches and then you've got 7-10 years of rebuilding.
So that 6 month mark is really key. I think it's MORE important than steps 1 or 2 actually. There are so many stories right on these forums of folks who were very active, got their scores up to 750s and then a few years later they're back with 500 scores -- again, with no savings to speak of!
So find a way to "game" your savings goals. Figure out what your cost of living is (true expenses not useless stuff like Netflix or other monthly membership fees) and figure out what your minimum debt payments would be and multiply that by 6 and make it a game.
My game now works out that my emergency savings is in a "CD Ladder" with a bunch of CDs that all mature at different dates two months apart. My current game goal is to have 30 different CDs all 2 months apart over a 5 year period which each cover my living expenses for 2 months. I'm not there yet but I will be and if something bad happens to my income or ability to earn, I will have 5 years of not having to cash in my stocks or sell my home or assets because I'll just let CDs mature on time, cash them out and pay my living expenses.
I started my ladder CDs in 2013 when I hit a 3 month period where my paycheck was held up (close to $43,000 was delayed through no fault of my own) so everything I worked so hard for went to 90D late or closed because I had $6 in savings. Never again! My ladder CDs were only $500 12 month CDs x 12 of them one month apart, then I moved to $1000 12 month CDs x 24 one month apart (2015) and now I'm moving to 36-month CDs two months apart (better APY return!) with 18 of those. Future will be 60-month CDs 2 months apart but I don't have the available cash to do that just yet, but one more year. It's a fun game to see the interest earned and know I'm going to be just fine (short of some crazy medical bill) if the paychecks dry up.
@Anonymous wrote:After a month of a lot of flurry and positive activity, its radio silence. I started working on this last month and gained a considerable amount of points. Currently working on AZEO and hammering away at a few GWs with no success. Trying to remember it took me a long time to get into trouble so it won't be an easy way out! It just stinks seeing no changes....
Just hang in there! There will be periods of no movements. I went through some for a few months then my scores jumped 30 points. Mainly due to items aging and consistenly keeping my UTI down.