Needing advice for best payoff strategy

Pharoe33 · ‎01-19-2017

Hi everyone, I recently found out that i'll be receiving backpay totaling in 20K due to deductions from my military retirement pay that weren't suppose to ne deducted. With these funds I'd like to strategically pay down my debts. My goal is to get an increase in scores. Today I paid off 3 small collections accounts and will work GW to have them removed.
My debts are as follows:
*Car Loan 36K ( upside down, car is worth 20k)
*NFCU Flagship 14,500 (15K limit, card closed)
*NFCU rewards 14,000 (15k limit, card closed)
*Hunter Warfield collection 4K
*USAA credit card 7,000 (charge off)

I was told by a friend to leave the charge off alone and apply all funds to the NFCU credit cards but leave a total of 30% on each. Any advice would be greatly appreciated.

Pharoe33 · ‎01-19-2017

Also I failed to add that the NFCU cards are closed but they do not reflect charged off on my report.

rmduhon · ‎01-19-2017

The credit cards, even the charged off one, are being included in your UTI which is most likely dragging your scores down. So you want those paid off as soon as possible for the best score. You may be able to do a PFD for the USAA card and get it off your reports completely.

MrsCHX · ‎01-20-2017

Hunter Warfield is tough. You can ask to settle but I don't think they really do that.

I wonder about bringing both NFCU cards to just below 50% and see if you can settle the other 2....

NFCU: $25,000; PenFed Power Cash Rewards: $3,500; PenFed Gold: $2,500; Capital One: $2,300; Nordstrom Visa: $2,000; Credit One: $1,250
Amazon: 800; Kohls: $1,500

stellar · ‎01-20-2017

I would consider how reliable your car is and whether you need a car to get to work. There are a lot of posts by people who are upside down in their car loans, their car breaks down and they can't afford another car loan.

Pharoe33 · ‎01-20-2017

The car is a 2009 CLS63 AMG and I just broke 112K miles. I've had more downs than ups with the car and truly believe it's on it's last leg. Heck 2016 alone I spent upward of 10K in repairs alone. Ideally I'd love to get out of this car but my scores are in the low 500's now and with this debt I don't believe I'd be approved for anything

Anonymous · ‎01-20-2017

@Pharoe33 wrote:
Hi everyone, I recently found out that i'll be receiving backpay totaling in 20K due to deductions from my military retirement pay that weren't suppose to ne deducted. With these funds I'd like to strategically pay down my debts. My goal is to get an increase in scores. Today I paid off 3 small collections accounts and will work GW to have them removed.
My debts are as follows:
*Car Loan 36K ( upside down, car is worth 20k)
*NFCU Flagship 14,500 (15K limit, card closed)
*NFCU rewards 14,000 (15k limit, card closed)
*Hunter Warfield collection 4K
*USAA credit card 7,000 (charge off)

I was told by a friend to leave the charge off alone and apply all funds to the NFCU credit cards but leave a total of 30% on each. Any advice would be greatly appreciated.

If the accounts are closed, your utilization will be 100% regardless of balance until paid off completely. So, your best strategy will be the one that pays off as many accounts as possible.

Good Luck!

Pharoe33 · ‎01-20-2017

Im ashamed I've allowed my finance to spiral out of control like this but I definitely want to grab the bull by the horns and not give up.

im thinking first move will be to negotiate the USAA and pay it for delete if they budge on the deletion.

NFCU is showing 990% utilization on my experience member account. I figured if I paid them below 30% that would sky rocket my score but if it's going to remain at 100% utilization then i don't see a score raise. I'm going to try and pay the original creditor for the Hunter war field account this way the Hunter war field can be removed hopefully.

this is crazy, so much extra cash that will be gone in the blink of an eye.

Anonymous · ‎01-20-2017

@Pharoe33 wrote:
Im ashamed I've allowed my finance to spiral out of control like this but I definitely want to grab the bull by the horns and not give up.
im thinking first move will be to negotiate the USAA and pay it for delete if they budge on the deletion.
NFCU is showing 990% utilization on my experience member account. I figured if I paid them below 30% that would sky rocket my score but if it's going to remain at 100% utilization then i don't see a score raise. I'm going to try and pay the original creditor for the Hunter war field account this way the Hunter war field can be removed hopefully.
this is crazy, so much extra cash that will be gone in the blink of an eye.

before you do that....

Please consult with a bankruptcy attorney in your area. If you are in an area which will allow the federal exemptions, you will be pleasantly surprised at how much of that windfall you could protect from creditors entirely...and let's face it, even with that coming in you're still going to be underwater...it's time to start looking for a fresh start

Pharoe33 · ‎01-20-2017

A great friend of mine told me to consider the same. You're absolutely right, I just fear bankrupt and starting over. My friend suggest filing chapter 7 and letting the car go in the bankrupt and using the cash I have coming in to leverage with secure credit cards and buy a cash car.