Recovering from bad debt

[Anonymous]

Hopefully a few of you can help me out with my best options for improving my credit score.

To give you the run down of my current situation:

current score 490-560 ball park

10k left on student loans (current)

8k left on auto loan (got repossessed/now redeemed & current)

9.5k credit card charged off in 2013

4 accounts that went to collections in last 6 years all paid off now

800 available credit 

I earn 55k annually 

1200 in rent/utilities

350 car/insurance

300-400 other bills

what can I do to continue repairing my credit?

[Anonymous]

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@Anonymous wrote:

Hopefully a few of you can help me out with my best options for improving my credit score.

To give you the run down of my current situation:

current score 490-560 ball park

10k left on student loans (current)

8k left on auto loan (got repossessed/now redeemed & current)

9.5k credit card charged off in 2013

4 accounts that went to collections in last 6 years all paid off now

800 available credit 

I earn 55k annually 

1200 in rent/utilities

350 car/insurance

300-400 other bills

what can I do to continue repairing my credit?

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This is going to remain a huge thorn in your side until 2020 unless you pay it off. 

You can write good will letters to the collection agencies on the paid off loans.

Other than that... patience.

[Anonymous]

Couple questions about the 9.5k in card debt.

Is it true that if I reach out in an attempt to make payment arrangements, but am unable to come to an agreement the 7 year fall off can restart from that contact date? Or, if we do come to an agreement but something happens were I'm unable to continue payments will the 7 years restart?

if it comes to settling the account in a lump sum less then the owed amount will that affect my score worse then leaving it alone, and extend the 7 years from the time of payment?

[rmduhon]

Nothing resets the credit reporting exclusion period. However, depending upon your state, making and agreement and defaulting can restart the SOL.

[medicgrrl]

Is the cc debt still within the SOL? I would work on the one's that are before you end up with any lawsuits.

[Anonymous]

You mention $800 available credit. How is that structured? You will get best results with 3 cards and an installment loan (your student loans cover this for you).

[Anonymous]

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@Anonymous wrote:

Couple questions about the 9.5k in card debt.

Is it true that if I reach out in an attempt to make payment arrangements, but am unable to come to an agreement the 7 year fall off can restart from that contact date? Or, if we do come to an agreement but something happens were I'm unable to continue payments will the 7 years restart?

if it comes to settling the account in a lump sum less then the owed amount will that affect my score worse then leaving it alone, and extend the 7 years from the time of payment?

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The only way for the dofd to re-age is if the account remains open (or is re-opened) and is brought into good standing. Since it is charged off, there is no possibility of that happening. 

Settling it will give you the opportunity to start rebuilding. If the balance is being included in your utilization (which it looks like it is based on what you've told us), your score will likely rise a bit (though unclear how much).