What to do with refund? help please!

[SSPA87]

Hi! I'd like some advice and help. I am getting a refund of around $5000. I want to do as much as humanly possible with that money to get rid of my debt. Here are the baddies I have:

Cap 1 - Charged off Credit card . Charged off in 2009. Current amount $3600 , adding fees & reporting CO every month

Bank of America - charged off credit card. CO in 2009. Current amount $3400, wasn't updating from 2009 until last year (2014) and has been updating the CO monthly since 2014

Rent Recovery - collection - $2808, joint account. Last year they offered settlement  for $1400 I think.

2 Medical Collections (Same company) - $1400 total 

Thoughts? I'm thinking PFD the medical, Settle for delete with Rent Recovery, but the Credit Cards... those are what I need help with! Thanks in advance!

[Anonymous]

Everyone will tell you to try a PFD with the credit cards but major lenders like capital one and bofa wont even consider that. I myself had several charge offs with several prime lenders, capital one, chase, citibank, discover. I settled with all of them for 30 percent of the balance that was outstanding. If your debt is longer than the SOL you can settle for even less than 30 percent of the total balance. I noticed that settling helped boost my score because it effected my utalization tremendously!

Good luck! 

[SSPA87]

Thanks! I figure my PFD odds are very slim with them. Both are set to fall off my credit report this year though, so maybe I can use that to my advantage? 

[gdale6]

---

@SSPA87 wrote:

Thanks! I figure my PFD odds are very slim with them. Both are set to fall off my credit report this year though, so maybe I can use that to my advantage? 

---

Debts that are past SOL and CRTP are Zombies, the max you would offer in that case is 20%, you might be able to settle for 30 now being so near to CRTP but if they are not updating monthly now I would wait for them to drop, reason being if you dont get the PFD and they update to paid they will look new in Ficos eyes and drop your score.

[SSPA87]

---

@gdale6 wrote:

---

@SSPA87 wrote:

Thanks! I figure my PFD odds are very slim with them. Both are set to fall off my credit report this year though, so maybe I can use that to my advantage? 

---

Debts that are past SOL and CRTP are Zombies, the max you would offer in that case is 20%, you might be able to settle for 30 now being so near to CRTP but if they are not updating monthly now I would wait for them to drop, reason being if you dont get the PFD and they update to paid they will look new in Ficos eyes and drop your score.

---

Unfortunately,  both credit cards charge offs ARE reporting monthly as CO. The BoA was NOT reporting monthly until 2014 when they randomly started reporting it every month again (They did not report monthly for 5 yes then randomly started again?!) Cap 1 is reporting monthly as well. I'll try to get them to settle and drop early off my CR. They're due to drop off in 10/2015 & 11/2015