topic Re: Credit Crisis!! in General Credit Topics

Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 18:53:01 GMT

I currently have a real credit dilemma! I have a credit card with a balance of about $30,000 and several other cards with little or no balances. This one card is keeping my utilization around 95%. Now here's the catch... The account is charged off and continues to grow interest. My three scores range from 500-593. I have read on this forum that the FICO simulator is not very accurate but it tells me if I pay off all credit card debt within 24 months my score should increase into the middle 700s. Problem #2-I am a student with a limited income and can't really afford to pay and extra $600 a month on this credit card. By the time I graduate and begin to make enough money it will be time for this card to drop off my credit report.

What do I do?

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 19:00:13 GMT

You need to call the credit card company that has charged you off and see if you can work something out, especially since it is on the fast lane to a CA. it's going to continue to draw interest, over the limit penelties etc. Call them and see what you guys can work out and hopefully you get them to stop charging iterest and get into an affordable payment plan. As of right now the last thing you need to worry about is your score, you have a $30,000 credit card debt that is only going to get bigger. That should be your main focus, don't even worry about your credit score right now. Call the credit card company.

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 19:17:32 GMT

Just contacted the credit card company and was informed that a collection agency was "hired" to collect the debt about a week ago but OC still owns the debt. The VP of Credit Card Operations told me that its still there choice if they accept the settlement or not and there is no way that I can just pay them and bypass the CA. I was also told that nearly half of that $30,000 is interest and fees. I am hoping that I can somehow negotiate a settlement and get the account removed from my CR although it is one of my oldest accounts.

It is I am lost. What do I do?

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 19:27:28 GMT

Post all your CC balances, CLs, APRs, and whether they have any lates or other adverse reporting on them.

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 19:53:33 GMT

Well Here goes...

CCC Balance APR Limit Open

BOA 33,297 27.99 18,000 chargeoff / sent to CA

Cap1 0 16.99 1,000 closed by consumer-no lates

Chase 2,500 28.99 2,794 chargeoff

Chase 5,750 17.49 5,000 chrgeoff

Chase 0 9.9 1000 closed by consumer-no lates

Discover 0 10.95 1000 closed by consumer-no lates

Sams 0 12.99 600 closed by consumer-no lates

Walmart 0 9.9 200 closed by consumer-no lates

HSBC/Best Buy 700 12.49 600 chargeoff

HSBC 719 19.98 800 chargeoff

HSBC 0 14.99 300 open since 03/07(rebuilding credit started)

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 20:05:52 GMT

that is just shy of being $43,000 and climbing each month. in credit card debt not to mention your upcoming student loan if you have one. Whewwww. How old are you if you don't mind me asking? The reason why I ask is, though I would never recommend BK or wish it upon anyone, if you are young and your are still in school you may qualify for Chapter 7. Starting out your life after school being over $43,000 in debt,debt that is all going to be sent as is sent to collections, with the possibility of being sued if you can't make aggrangments on them is a horrbile way to start your life.

I think you should at least explore the possibilities of it. yes BK is never good but it's also not the end of the world either. Even if you don't go for BK your credit score and report is going to be damaged for much longer than the 7 or 10 years that the BK stays on. I would consult with a BK attorney and just hear him/her out.

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 20:10:13 GMT

So the first and last, the BOA and the recently opened HSBC, are the only 2 CCs that are open?

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 22:07:26 GMT

Well the BOA is not open, its just accruing interest. HSBC is open and I keep the utilization between 1-9% on it.

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 22:10:00 GMT

I filed BK two years ago but the judge dismissed my case so I am stuck with the bad effects and the debt. What do I do???

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 22:11:16 GMT

why did the judge dismiss your case?

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 22:12:17 GMT

I totally agree with bowsd

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 22:14:00 GMT

After reviewing the debt and income he determined that I could pay the debts and would not give me any relief from creditors. But, in all truth I was in way over my head.

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 22:16:12 GMT

huh, are any circumstances different now income wise than 2 years ago? You mentioned you're in school. Were you in school with the same job two years ago?

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 22:24:49 GMT

Well about three years ago I had several investment properties with tenants who skipped out on their lease within two weeks of each other. This left me with three house payments totaling about $2,500 a month. I also had two car payments, my wife and my own, totaling $1,100 a month. I sustained myself for almost a year on savings but in the meanwhile I lost all rental properties and my wife's car was repossessed. I was 22 years old when I filed BK.

I am currently in school pursuing my Masters and plan to go straight through to get my PhD. That will take another three years and by that time some of those negative will begin to fall off.

I am really trying to make the best of a bad situation but don't know what to do...

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 22:30:08 GMT

You can try to apply again, some things are different. If you can't, the one you have to focus on to get some sort of settlement is the $30,000 one. It's way to large where BofA will sue without blinking an eye. You should maybe look for a reputable financial counsler or debt attorney.

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 22:36:10 GMT

destinyschild wrote:
I filed BK two years ago but the judge dismissed my case so I am stuck with the bad effects and the debt. What do I do???

Did you file BK7 or BK13? And did you do it yourself or use an attorney?

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 22:41:14 GMT

destinyschild wrote:
I had several investment properties with tenants who skipped out on their lease within two weeks of each other.
...
I lost all rental properties and my wife's car was repossessed.
...
I am currently in school pursuing my Masters and plan to go straight through to get my PhD.

So in addition to the other negatives, you have a repo and foreclosures? Or did you get the homes sold before foreclosure?

You really need to give BK some consideration, and if you decide to do it use an attorney.

There's some REALLY good reading about BK over on CIC. Links to links external to CIC. I'm going to bounce them off Tuscani and see if I can post them here.

Re: Credit Crisis!!

Anonymous — Wed, 27 Jun 2007 23:49:22 GMT

Here are some BK links with good reading on the subject if you're considering it.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=17383

Re: Credit Crisis!!

Anonymous — Thu, 28 Jun 2007 00:19:58 GMT

you should call a bk lawyer and try again....sounds like you are in much worse shape than you were back in the day. this might be a situation where bk is better than trying to fix it all. i am not a big fan of bk, but sometimes it is necessary.