How to fix credit when you have been so good at ignoring it?

[Serasvae]

I have four (4) credit cards that I stopped making payments on about three years ago, and for whatever reason, I just simply allowed all four of them to proceed into collections - needless to say, before I knew it I was deep in debt. I don't understand why I did this, but a couple years ago, when I was about to call and set up payments once again, I got the "best advice" from a "friend" telling me to just wait it out (since I already hadn't made any payments in a year or so, what is another year going to matter...) and this "friends" advice was to just save up and eventually call each creditor and negotiate a settlement amount and pay off the accounts at a negotiated lower amount as "paid in full."

Needless to say once again, this was not good advice. I should have known better.

Now, it has been about three years since I have made any payments. I did negotiate a settlement amount on ONE of the credit cards, and I started making small payments on another...but I still have two other credit cards that I haven't paid in approximately three years.

I need to know the best possible strategy here for fixing this mess. I am not sure if I should call and begin payments on the other two credit cards or even continue making the payments on the current credit card I am paying - versus - paying down each credit card a certain percentage, and then making payments from there... ???

It is very confusing and I have already received bad advice... So hopefully someone here can help me out. I have been contemplating meeting with a Loan officer/Mortgage lender to see if the professionals can direct me, but figured I would try here first.

Also, if you could tell me what you think the time frame would be before the bad begins turning good again...

Thank you kindly for your suggestions.

[marty56]

Welcome the the forum.  If the accounts have gone into collection, you would want to negotiate a PFD.  If the accounts are still with the original creditor, you would want to continue to paty tehm on time and as the late payments age, their effect on your FICO score will diminish.

The best way to pay down CC FICO score wise is to make minimum payments on all cards except the one with the smallest balance.  On that one pay extra till it is PIF and then attack the card with the next smallest balance until it is PIF.

Plase post more information on you situation and we can help you get through this.  Do not give up.  Most of us here have been in your situation or worse.

[Crashem]

Careful.   You might reset the clock on lastderogatory and therefore when it will fall off report.  pull you credit and see what is listed now.  Feel free to post here without personal info.