10-14-2012 08:08 PM
I'm perfectly okay with you paying your debts and think you should in fact do so. I just think that you should pressure them for a PFD first. Pressure them a lot actually. They will always be there to accept your money when you decide to pay them. Anybody can just pay off their bad debts, you are here for advice on how to repair your credit and raise your scores.
If the negative information isn't removed from your reports it will take years for your scores to recover.
10-14-2012 08:59 PM
+1 Try for the PFD, if you can't get it, worst case scenario is you still just pay it and try for a GW. But it is better if you can just get them to do a PFD.
10-15-2012 06:53 AM
I definitely agree with the PFD approach, but even if some of the accounts don't agree to the PFD I would consider paying the debt off--especially if you think you may be sued. In your original post you mentioned putting 38% of your income into a 401(k). I don't know how much that comes out to be, but just remember that there is a cap on the amount you can put into a 401(k) every year. If your 38% of income goes over that capped amount (sorry, I don't know it off the top of my head but your employer's HR dept or a quick Google search will give you details) I would definitely cut back on the % that you contribute to the retirement plan and put that $ toward your current debts.
You've come a long way already and are on the right path. Good luck!
10-15-2012 09:25 AM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.