topic Re: Every CA is refusing PFD. Is it even worth paying? in Rebuilding Your Credit

Every CA is refusing PFD. Is it even worth paying?

hippychic823 — Sat, 23 Jul 2016 15:52:49 GMT

I feel like I keep asking the same thing over and over on here but I'm so confused and I'm really trying to do what is best for my credit situation. Long story short I have over 8k in collections, all CC debt. I've contacted all the OC's and they all say they can't work with me, that my accounts are no longer owned by them (even though 2 of them are still reporting my account as open and CO...or at least that what it looks like on my CR) so I called the CA's. PRA owns 3 of my accounts and absolutely refused PFD so I made payment arrangements with them. The other company is Northland and they wouldn't accept PFD either but they aren't even showing up on my CR. The last CA is called CSI, they also aren't showing up on my CR and they also won't accept PFD. These are all due to fall off in 2021. My understanding is that, unless they're removed from my report, paying them won't help my score. Other than being sued why pay? If my credit is still going to suck I'd rather take that cash I'd be paying them and put it into savings since I would have to be operating on a cash only basis until 2021 anyways. Pleeeaaasssse if anyone can help me I really need advise.

Re: Every CA is refusing PFD. Is it even worth paying?

hippychic823 — Sat, 23 Jul 2016 15:57:42 GMT

I also have a 47k foreclosure that I was going to attempt to tackle after I paid off the collections but at this point I'm thinking it's best to cut my losses and file bk (I'd have to file Ch 13 I'm thinking), I feel like the effect of the bk on my score would be about the same as if I paid all the CA's off if the CA's won't PFD. I'm already sitting with a score in the freaking 400's, it really cant get much worse. I feel so lost right now and no clue where to go from here.

Re: Every CA is refusing PFD. Is it even worth paying?

Anonymous — Sat, 23 Jul 2016 16:15:02 GMT

I'm not expert especailly with BK, but it does sounds like this could be your only option at this time. I heard theres a BK that after 2 years you can start applying for new credit and usually successful.

Good luck - your credit score doesnt change if any at all if you pay the CA and they dont delete, the status is the only thing that will change that it will say Paid in Full. To some creditors that's enough to give you a credit but most of them are all system generated that they all go by the score and not manual review.

Better have more of our experts pitch in on this.

Re: Every CA is refusing PFD. Is it even worth paying?

Anonymous — Sat, 23 Jul 2016 16:31:14 GMT

A paid collection doesn't help simply by being paid, but it will stop updating and have less and less of an effect on your score over time. With a Chpt 13 BK, you are going to be paying off those debts anyway. Why add a BK on top?

Re: Every CA is refusing PFD. Is it even worth paying?

Anonymous — Sat, 23 Jul 2016 16:37:15 GMT

OP, I would suggest you talk to a bankruptcy lawyer at this point about which options are the best for your situation.

If you can get a timeline for BK vs paying everything off and what each will cost you, you can get a better idea of what would be ideal for your future and what you can handle.

The important thing to remember right now is that you know you need to do something and that you are willing to put the work into getting it done. Best wishes on your journey.

Re: Every CA is refusing PFD. Is it even worth paying?

Anonymous — Sat, 23 Jul 2016 16:52:35 GMT

@Anonymous wrote:
A paid collection doesn't help simply by being paid, but it will stop updating and have less and less of an effect on your score over time. With a Chpt 13 BK, you are going to be paying off those debts anyway. Why add a BK on top?

That depends on the OP's disposable income. Unsecured debt gets what they would normally get in a Chapter 7. The only thing the OP would have to pay for the most part 100% is secure debt.

Re: Every CA is refusing PFD. Is it even worth paying?

Anonymous — Sat, 23 Jul 2016 16:59:14 GMT

Moreover, paying a collection not only stops updating but if they are paid and start aging, you may be able to obtain credit in the future.

Where if they are unpaid thus much lessor odds of being granted future credit.

I do agree with Lowkeyorca, speak to a few Lawyers and see what's in your best interest.

Re: Every CA is refusing PFD. Is it even worth paying?

hippychic823 — Sat, 23 Jul 2016 17:10:37 GMT

I spoke with a BK lawyer briefly yesterday and, of course, he advised me to file and said I'd have to do a Ch13 because of my income. But, I worry he is only telling me file so he will have a case. I am willing to pay everything off. I want to pay everything because, ethically it's the right thing to do. However, it sucks to pay and not get an increase in score. My thoughts were that with bk I would be more likely to be able to rebuild with a fresh slate after discharge (which would be about 3 yrs) whereas if I paid the CA's and the baddies were still on my report and my score was still in the 400's I wouldn't be able to start the rebuild until they all fall off in 2021. But, I don't know if I'm necessary right to assume this, I've never been this low financially before and I have no idea of the best way to get back on my feet.

Re: Every CA is refusing PFD. Is it even worth paying?

Anonymous — Sat, 23 Jul 2016 17:16:33 GMT

@hippychic823 wrote:
I spoke with a BK lawyer briefly yesterday and, of course, he advised me to file and said I'd have to do a Ch13 because of my income. But, I worry he is only telling me file so he will have a case. I am willing to pay everything off. I want to pay everything because, ethically it's the right thing to do. However, it sucks to pay and not get an increase in score. My thoughts were that with bk I would be more likely to be able to rebuild with a fresh slate after discharge (which would be about 3 yrs) whereas if I paid the CA's and the baddies were still on my report and my score was still in the 400's I wouldn't be able to start the rebuild until they all fall off in 2021. But, I don't know if I'm necessary right to assume this, I've never been this low financially before and I have no idea of the best way to get back on my feet.

If you do not believe BK is in your best interest, let's go through your debts.

List dofd's, who they are with, how much is owed.

What is your income? How much can you reasonable pay up front, and per month towards the debt while still maintaining your current responsibilities?

Re: Every CA is refusing PFD. Is it even worth paying?

Anonymous — Sat, 23 Jul 2016 17:38:13 GMT

Your score will not stay in the 400s as your collections age. Plenty of people on here, including me, have open collections and mid 600 scores. You won't see an immediate score increase just from paying, but your should be ok in 3 years, if not sooner without bk.

Re: Every CA is refusing PFD. Is it even worth paying?

hippychic823 — Sat, 23 Jul 2016 17:56:29 GMT

Annual income a little over 80K.

OC: Credit First/Firestone
DoFD: 10/2014
Balance: $938.00
Status: CO

OC: Synchrony Bank/American Eagle
DoFD: 11/2014
Bal: $244.00
Status: CO (when I called to PIF and request a PFD they told me they no longer owned the acct and referred me to CA called Northland. The Amer Eagle card is still reporting monthly as CO but the Northland CA is nowhere on any of my CR's)

OC: Synchrony Bank / Care Credit
DoFD: 11 /2014
Bal: $702.00
Status: CO ( showing as 0 Bal monthly under OC entry on my CR. Account now owned by PRA and shows $702.00 balance under their entry on my CR) Both Synchrony and PRA are reporting this item.

OC: Citibank/Best Buy
DoFD: doesn't show the OC acct on my CR. All I see is PRA entry stating it went into collections on12/10/15 )
Bal: $ 4,713
Status: In collections with PRA. Only PRA reporting this item.

OC: Comenity Bank/ Victorias Secret
DoFD: doesn't show OC acct on my CR all I see is PRA entry where it was placed for collections on 10/28/15.)
Bal: $708
Status: In collections with PRA. Only PRA reporting this item.

OC: Cap1
DoFD: 2/2015
Bal: $ 702.00
Status: Cap1 reporting monthly as CO. (When I called to offer to PFD they said they no longer own the acct and referred me to CA called CSI. The CA is not reporting on my CR) OC still reporting monthly, CA not on CR/not reporting.

OC: Wells Fargo Home Mortgage
DoFD: 2/2015
Bal: $47, 056
Status: foreclosure. Last entry was 10/2015.

The only good thing on my acct right now is my auto loan with Chase that is currently in good standing but I do have a 30 day late from late 2014 and one in early 2015. Balance remaining on it is $7,188.

I called PRA and made arrangements for the Best Buy account and called Northland CA and made arrangements to PIF the Amer Eagle acct on the 29th of this month.

Re: Every CA is refusing PFD. Is it even worth paying?

hippychic823 — Sat, 23 Jul 2016 17:59:43 GMT

How long does it take to get out of the 400's if I were to pay these off? This gives me some hope

Re: Every CA is refusing PFD. Is it even worth paying?

Anonymous — Sat, 23 Jul 2016 18:19:55 GMT

These are all fairly recent, so the score climb is probably going to be long. I wouldn't even look at it for awhile, much like not looking at the scale when trying to get in shape.

Do you have any savings to pay any of these off entirely? How much money can you commit toward the debts per month?

Re: Every CA is refusing PFD. Is it even worth paying?

hippychic823 — Sat, 23 Jul 2016 18:47:06 GMT

No savings yet but I do have a retirement acct with about 4K in it but I really don't want to touch that, especially if using it to pay the collections isn't going to help my score. I have about a couple hundred extra that I can use to pay. The only one able to PIF at them moment is the Amer Eagle collections that is $244.00. I did make arrangements with PRA to pay $50 monthly on the Best Buy since it is in their litigation department and I fear they will end up suing me anyways and because it's my biggest balance other than my foreclosure.
I just keep thinking that if I file BK at least I'll have everything paid off and it would be better for my credit in the short term. But, long term it would be best to pay the collections and wait for them to fall off. Either way, I'm screwed. With scores in the low 400's nothing I can do at this point will help until they all fall off. It's just unfair that doing the right thing and paying them off serves no more benefit, score wise, than not paying them.

Re: Every CA is refusing PFD. Is it even worth paying?

Anonymous — Sat, 23 Jul 2016 20:03:13 GMT

@hippychic823 wrote:
No savings yet but I do have a retirement acct with about 4K in it but I really don't want to touch that, especially if using it to pay the collections isn't going to help my score. I have about a couple hundred extra that I can use to pay. The only one able to PIF at them moment is the Amer Eagle collections that is $244.00. I did make arrangements with PRA to pay $50 monthly on the Best Buy since it is in their litigation department and I fear they will end up suing me anyways and because it's my biggest balance other than my foreclosure.
I just keep thinking that if I file BK at least I'll have everything paid off and it would be better for my credit in the short term. But, long term it would be best to pay the collections and wait for them to fall off. Either way, I'm screwed. With scores in the low 400's nothing I can do at this point will help until they all fall off. It's just unfair that doing the right thing and paying them off serves no more benefit, score wise, than not paying them.

After they are paid you can try to goodwill them away.

Unfortunately for mistakes and damage this recent, the only thing you can do is chip away at them with what you can afford and be patient.

No applications for awhile, but maybe that's okay. Give yourself some time to regroup while you are rebuilding. Over time, the fact that you paid them will matter. Whether that's because they get removed in good faith, or just because an aged paid collection looks better than an unpaid one.

Chin up. There's a future in the distance.

----

I would PIF that collection since you are able. Don't touch your 401k, you need that to start growing ASAP for your retirement. In fact, I hope you are putting at least 10% of your income into it.

You didn't mention how much money you have left over each month, other than the $50/mo you have committed to the Best Buy account, so it's hard to advise how to pay off everything else. I'd keep in mind that everything that is recent is at risk for a lawsuit.

Re: Every CA is refusing PFD. Is it even worth paying?

hippychic823 — Sat, 23 Jul 2016 21:39:39 GMT

Would it be a better idea to pay off all my small debts and file BK for the foreclosure and the Best Buy card? Is that even an option?

Re: Every CA is refusing PFD. Is it even worth paying?

hippychic823 — Sat, 23 Jul 2016 21:43:22 GMT

I have quite a bit of disposable income left after I pay my essential bills (car, car insurance, utilities, gas, groceries, etc) but my 13 yr old is needing braces and some other dental work that I'll have to pay for out of pocket since financing isn't an option at this point and my dental insurance only pays a percentage so I've been saving up for that which why I would only want to commit to paying all my other collections (besides Best Buy which I've made arrangements with PRA for) off a few hundred a month.

Re: Every CA is refusing PFD. Is it even worth paying?

Anonymous — Sat, 23 Jul 2016 21:45:34 GMT

If you can, you might want to think about paying the American Eagle and Cap1 Co. With them reporting every month it's keeping your scores down. I'm not saying that your scores will go ip, but they have the potential at that point. Plus if you can make arrangements on them before the CA reports it it'll be one less negative on your reports

Re: Every CA is refusing PFD. Is it even worth paying?

hippychic823 — Sat, 23 Jul 2016 21:52:27 GMT

Those were the 2 I was planning on paying first. I already made arrangements to PIF the Amer Eagle account when I get paid on the 29th and then paying half on the Cap1 on Aug 14th when I get paid again and paying the other half on Aug 29th while still paying the $50 a month on the Best Buy. After I paid those two I was planning on making arrangements on the Care Credit and Victoria Secret.

Re: Every CA is refusing PFD. Is it even worth paying?

hippychic823 — Sat, 23 Jul 2016 21:53:32 GMT

I'm pretty confident I can pay off all the CC collections but the Best Buy and the foreclosure will be tougher. Those are the two that have me considering BK