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Regular Contributor
apandabear
Posts: 200
Registered: ‎03-15-2012
0

Wisdom of paying balance after settlement?

Well, I am at a crossroads.

 

It's been 2 years since my credit bungle. Long story short, I was laid off in 2009. I held it together for a while, cashed out my 401k, lived off of credit cards. Started working one job almost immediately (waiting tables). Eventually picked up a second job (bartending). I held it together for about a year, and it all started falling apart. First the car was taken, then the credit cards were charged off. My utilities were on and off. Cell phone was disconnected. Everything came to a screeching halt. A family friend setlled all my credit cards and paid the rest of the debt in full. All told, I made it out just fine.

 

Two years later I'm trying to recover credit-wise. I really wish I had started as soon as it was over. Maybe a credit card or two would have helped speed this up. Oh well, I'm here now and I know what to do.

 

My first GW attempt on my only collection account was a success. I just sent out 3 more to address a couple of other accounts that are in the worst standing. I'm not even going to try to GW Bank of America (2 credit card COs), for two reasons. One, I've heard they are a tough nut to crack. Two, I settled on the accounts, I didn't PIF.

 

So my question is.. Is there wisdom in offering a PFD on the settled accounts at this point? I'm in a position where I can pull it off financially. Granted, the cash I've saved is supposed to go to a new car, but in the long run, it might be beneficial for me to have the COs off my report.

 

I'm open to suggestions, recommendations and input. Has anyone ever tried this before? Thanks!

2009-10 - C/Os
2011 - Debts paid, no open credit
2012 - Rebuilding started, secured cards opened, SL rehabbed - EQ myFICO 636
2014 - 10k Discover, 3.5k Freedom, AmEx Green, SL, Auto Loan - EQ myFICO 695
Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Wisdom of paying balance after settlement?


apandabear wrote:

Well, I am at a crossroads.

 

It's been 2 years since my credit bungle. Long story short, I was laid off in 2009. I held it together for a while, cashed out my 401k, lived off of credit cards. Started working one job almost immediately (waiting tables). Eventually picked up a second job (bartending). I held it together for about a year, and it all started falling apart. First the car was taken, then the credit cards were charged off. My utilities were on and off. Cell phone was disconnected. Everything came to a screeching halt. A family friend setlled all my credit cards and paid the rest of the debt in full. All told, I made it out just fine.

 

Two years later I'm trying to recover credit-wise. I really wish I had started as soon as it was over. Maybe a credit card or two would have helped speed this up. Oh well, I'm here now and I know what to do.

 

My first GW attempt on my only collection account was a success. I just sent out 3 more to address a couple of other accounts that are in the worst standing. I'm not even going to try to GW Bank of America (2 credit card COs), for two reasons. One, I've heard they are a tough nut to crack. Two, I settled on the accounts, I didn't PIF.

 

So my question is.. Is there wisdom in offering a PFD on the settled accounts at this point? I'm in a position where I can pull it off financially. Granted, the cash I've saved is supposed to go to a new car, but in the long run, it might be beneficial for me to have the COs off my report.

 

I'm open to suggestions, recommendations and input. Has anyone ever tried this before? Thanks!


I do believe once the account is legally settled, and closed, they cannot accept payment because they have written off the remaining debt...

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX

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