I'm at a point where I don't know what my best options are for rebuilding my credit. I posted another thread a few weeks ago about my PRIVATE student loan collections.
My middle score was a 409, and I am determined to raise it to at least an average rating. In the past three weeks, I've taken it from a 409 to a 464, which obviously still sucks. Here's a breakdown of what's on my report. What sort of direction should I take?
I have 15 collections. That's a lot. A whole lot, but 9 of them are these private student loans, and they're being reported by Sentry Credit. The total is about $206,000 according to them. The original amount borrowed was significantly less, I believe around 65,000 and the rest is late fees and who knows what else.
Some are from utility companies, Time Warner cable, electric company, etc. The balances are ranging from $83 to about $400.
Finally, three are for charged off credit cards. One is HSBC, charged off in November, 2011 for $428 and one for Continental Finance, which charged off in 2008 with a $300 balance, that has now grown to being reported by two CAs, Frontline Asset, which is saying I owe them $1,138 for the account, and Slovin and Associates law firm, which says $713 is the balance on the same account. Continental Finance is no longer reporting anything at all on my bureau, balance-wise. The last credit card is Merrick Bank, which is showing $750 for my Hooters card, which also charged off, in 2010. They are the OC.
I have a couple of late pays on other things, 30 days, a few 60 days, and a 90 day on one credit card that is still open. It's been current and under the limkit for the past 5 months. I also have a Navy Federal secured Visa which has a $0 balance, and that's that. The other credit card is also a $0 balance right now.
In the past three weeks, I have paid in full a couple of those utility collections, because I was told that they will not negotiate settlements, and the balances were legit balances, with no collection agency fees added. I settled the HSBC credit card yesterday for 75% of the $428.
My questoin now is what should I do from here? Just keep doing what I'm doing? Should I pay off some collections with my credit cards, and just pay the cards off as I can? I want to make as much of an impact as possible, while also keeping in mind like I said in my original, these student loans are not anything I can even pretend to be able to pay.
I have $14,000 in federal student loans which are current, never late, it's the private ones that are overwhelming.
I"ve tried to talk to them, but they won't do ANYTHING to help. No reaging, no payment plan I can afford, nothing. At this point, I'm basically just waiting every day to get sued, and hope for some mercy from the judge. It's a horrible position to be in, and it's part of why I let my credit get to the point where it is now, because it just seemed hopeless. Now I wAnt to clean things up, as much as I can. I don't know how they can get away with it, either, but it sucks.
If I were you, I'd leave the country. Seriously. Find a nice beach in Thailand or Costa Rica. That's what I'd do.
Starting Score: 653 (11/1/2011 TransUnion)Believe me, I've considered doing JUST that. Or at least moving back to NC where I won't have to worry about garnishment or being sued, since the SOL is only 3 years, and they'd be outside that now. So I'd only have a few years left with it on my credit...
Baring that, yeah, a move is definitely something I'd considered. I have my family here, and my wife and I have a daughter, so... not as easy as it would seem.
Nope, sallie mae says they won't consolidate private loans. I think the person I talked to may have been misinformed, but I've not called back again afterwards to ask, as I didn't really think it would be an option. I also don't work in the public service, although most of the options that are available only apply to federal student loans, which aren't a problem for me to pay.
have you considered filing for bankruptcy? I know a federally insured student loan is not dischargeable. But what about a privately held student loan? I filed for bk back in dec and saw my credit scores jump from 499 to just above 600 in less than 6 months after discharge. Consult w/ a bk attorney to see about those privately held student loans.
Unfortunately, bk isn't an option. I've already looked into it, and was told that private loans have some loophole that provides them with the same inability to discharge in a bankruptcy. The only difference is that they do have a statute of limitations. Unfortunately, Ohio is a creditor friendly state, so that sol is 15 years, vs north carolina where I used to live, which has a three year statute of limitations.