topic Re: Convert charge off to current debt? in General Credit Topics

Convert charge off to current debt?

Anonymous — Wed, 30 Jan 2013 03:14:16 GMT

I have a 2-year old charged off car loan on my credti report. It was a Pay for Delete deal that I ignorantly did not wait to get in writing. They conveniently forgot to erase the debt after I paid the amount that we agreed upon on the phone. Bad blood aside, I want it off of my credit report sooner rather than later. I have one debt in front of it in my debt snowball that I will pay off this Feb. Now, instead of waiting for March work on getting a written PFD deal done on the car loan, I'd like to start negotiating it now, and be done with it all the sooner.

One way I can pay it off quickly would be to create new debt using a cash advance to fund the debt payoff.

Part of my brain says this is about the stupidest idea ever, the other says by doing this a month earlier, my credit score will increase earlier so it is worth it.

What say you? This is the last negative left on my report, which is what is creating the sense of urgency to get rid of it.

Re: Convert charge off to current debt?

Anonymous — Wed, 30 Jan 2013 03:56:30 GMT

Are they still showing a balance?

Re: Convert charge off to current debt?

RobertEG — Wed, 30 Jan 2013 06:52:27 GMT

I'm confused....

If you paid the debt, how is their any remaining debt?

A charge-off is the reporting of an accounting measure they took at one prior point in time.

The ultimate status of the debt, paid or unpaid, does not alter the fact of the charge-off haven been taken. You dont erase a CO by paying the debt.

Deletion can be achieved only by their GW agreement to delete.

The account should be reporting paid, $0 balance.

I see no debt upon which to offer a PFD.

Re: Convert charge off to current debt?

Anonymous — Wed, 30 Jan 2013 07:28:55 GMT

They conveniently forgot to erase the debt after I paid the amount that we agreed upon on the phone

I need to expand this , apparently. They agreed to settle for less than the amount owed, about 25% . I sent them 25% of the balance and waited for the debt to be marked as "paid as agreed" . That never happened so I called them about 5 separate times. At first, they pretended to work with me saying "ok, we'll mark it as paid" , and the last time I called they basically said that I owed the full balance.

I realized that I should have gotten it in writing, but you cannot turn back the clock. Since then(about 18 months ago) I ignored the debt and went on paying off other debts. Well, now I have one "bad" debt left that will be paid off in February. That leaves just the charged-off car loan that I need to take care of.

It's taken me so long and so much sacrifice to get to this point, I just want it to be over. Now, taking on debt to pay off this old debt is moving the problem from my credit report and on my credit card or a secured personal loan.

Or, I can wait until March and pay off that charged-off car loan debt with income from that month.

Re: Convert charge off to current debt?

RobertEG — Wed, 30 Jan 2013 20:42:35 GMT

You appear to have a breach of oral contract action that you could pursue.

However, your goal seems to be to pay it off.

What is the rate offered on the cash advance? Do your current creditors offer a balance transfer at a low intro rate that might be a bettter alternative?

Could you obtain a personal loan at a better rate?

What will your % util be on the card to which you are adding the additional debt?

Re: Convert charge off to current debt?

Anonymous — Thu, 31 Jan 2013 04:36:27 GMT

@RobertEG wrote:
You appear to have a breach of oral contract action that you could pursue.
However, your goal seems to be to pay it off.

What is the rate offered on the cash advance? Do your current creditors offer a balance transfer at a low intro rate that might be a bettter alternative?
Could you obtain a personal loan at a better rate?
What will your % util be on the card to which you are adding the additional debt?

1) 25% (ouch!, never mind the cash advance idea)

2)I don't think that you can balance transfer a charged-off car loan onto a credit card.

3) Probably! I'll have to apply to find out what interest rate that I can get.

4) No reason to answer this since I won't do the cash advance.

I'll start the negotiation process with the creditor and see if I can get a PFD or a Paid as Agreed out of them.

Either will help. When I applied for a home loan 2 months ago they didn't like the fact that had not taken care of the delinquent car loan.