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Up unto the beginning of this year I've paid my CC's on time every month. Granted I carried high balances so my credit score was suffering from that. In Jan/ Feb my daughter finished school in Hawaii (yes poor baby) and didn't have any money to get home. I ended up having to rob Peter to pay Paul as the saying goes to get her home. It took her 6 months to find a job...blah! blah! blah!. During this time my CC's went about 30 - 120 days past due (I have two CU cards that I try to keep up to date). None, of these have been charged off or sent to collections although, I received a letter from Amazon saying if I don't send at least $6 by the end of August they will charge it off. At this point, is it be better for my credit score if I make payment arrangements or pay them in one lump sum? All but the two CU accounts are balances less then $800's so I'm hoping to have them paid off by the end of the year if I do the Payment thing. I really appreciate someone's help on this. I've tossede and turned many nights and have worked and reworked my budget several times depending on what my current thought was. I definitely don't want to allow them to be charged off I know that.
Paying it off in one sum would be better in that it would bring the account current, thus preventing the accrual of any more delinquencies.
However, that is not to say that paying would be the best or only option.
If the creditor agrees to a payment plan AND to cease reporting of additonal derogs as long as you contnue to meet the monthly payments, then a payment plan would arrive at the same end point.
An additional advantage, if you could pay in full, would be the opportunity to first offer a pay for deletion.
If they accept a PFD offer, you could both settle the debt and obtain deletion of derogs, which would no longer affect your scoring.
Creditors are not prone to agree to any PFDs until the entire delinquency has been paid.......
@Anonymous wrote:Up unto the beginning of this year I've paid my CC's on time every month. Granted I carried high balances so my credit score was suffering from that. In Jan/ Feb my daughter finished school in Hawaii (yes poor baby) and didn't have any money to get home. I ended up having to rob Peter to pay Paul as the saying goes to get her home. It took her 6 months to find a job...blah! blah! blah!. During this time my CC's went about 30 - 120 days past due (I have two CU cards that I try to keep up to date). None, of these have been charged off or sent to collections although, I received a letter from Amazon saying if I don't send at least $6 by the end of August they will charge it off. At this point, is it be better for my credit score if I make payment arrangements or pay them in one lump sum? All but the two CU accounts are balances less then $800's so I'm hoping to have them paid off by the end of the year if I do the Payment thing. I really appreciate someone's help on this. I've tossede and turned many nights and have worked and reworked my budget several times depending on what my current thought was. I definitely don't want to allow them to be charged off I know that.
Pay as much as it takes to bring each account CURRENT. Making payment arrangements will result in more monthly lates.