topic Re: Needing some help, wanting to fix what I destroyed in Rebuilding Your Credit

Needing some help, wanting to fix what I destroyed

Anonymous — Sun, 15 Dec 2019 19:43:49 GMT

Ok, in 2015 there was a mass layoff of oilfield and I just happened to be on the back end of that one, finally 4 years later I’m trying to fix what I destroyed by living out of my means. I’m a father of 3 girls and I’m wanting to buy a house towards the end of ‘21 I’ve spent hours and hours on this forum reading different stories so I figured the best plan of attack is to ask for help.

Collections:
1 Midland funding 1538.00 ( fell behind 2015 )
I sent a pfd offering 40 percent. Is that sufficient? Also do I need to just send 1 and wait or send a few hoping it will land in the right hands. I sent it 14 day ago, as well as 4 other PFD letters so this questions applies to all collections.

2 midland funding 1510.00 ( fell behind 2015 )

3 trans world systems 730.00 ( switching electric companies and the fees they charged ( 2016 )

4 portfolio recovery 3370.00 ( fell behind 2015 )

5 receivables management 200.00 ( insurance cancellation fee 2019 )

Until I got the myfico I didn’t even realize these charge offs were affecting me, CK doesn’t show you this and I recently learned the hard way.

Charge offs
Barclays Bank (2015 ) current balance 2585.00 CL was 2000.00 so it shows 129%
Barclays Bank ( 2015 ) current balance 2612.00 CL was 2000.00 so it shows 131%
Matco tools (2015 ) shows 0 balance on 2 reports and 7500 on Experian. This was a secured loan BTW
Texas Trust CU ( 2015 ) current balance 4995.00
Cornwell tools ( 2015 ) current balance 0
Credit one bank ( 2015 ) current balance 0
Kay Jewelry ( 2015 ) current balance 0

As of right now my UTI is at 80 percent but that’s because my report hasn’t updated showing 4 paid off credit cards yet, and by the end of January I will have almost every other open cc, loan, etc paid off, the only things that will be showing a balance will be these collections / charge offs.

As of right now my FICO 8 scores are
EQ: 583
TU: 621
EX: 613
So there not as terrible as you’d think. But I need them to be a lot higher, I know my mortgage scores are worse.

EQ: 546
TU: 575
EX: 609

I already have a plan to snowball all of my normal payments with in the next month. I’m sitting on the cash to pay 40 % of each collections for a PFD,
I just need help with what to do with the charge offs. Do I leave them alone even though some are reporting a balance? Settle on the ones with a balance? Or PIF even though most are 4+ years.

I really look forward to yalls help I’ve seen y’all do some magical things. And I’ll be open to every aspect of what y’all need.

Thanks!

Re: Needing some help, wanting to fix what I destroyed

FireMedic1 — Sun, 15 Dec 2019 20:19:24 GMT

@Anonymous wrote:
Ok, in 2015 there was a mass layoff of oilfield and I just happened to be on the back end of that one, finally 4 years later I’m trying to fix what I destroyed by living out of my means. I’m a father of 3 girls and I’m wanting to buy a house towards the end of ‘21 I’ve spent hours and hours on this forum reading different stories so I figured the best plan of attack is to ask for help.

Collections:
1 Midland funding 1538.00 ( fell behind 2015 )
I sent a pfd offering 40 percent. Is that sufficient? Also do I need to just send 1 and wait or send a few hoping it will land in the right hands. I sent it 14 day ago, as well as 4 other PFD letters so this questions applies to all collections.

2 midland funding 1510.00 ( fell behind 2015 )

3 trans world systems 730.00 ( switching electric companies and the fees they charged ( 2016 )

4 portfolio recovery 3370.00 ( fell behind 2015 ) There's 7 collections that will be deleted once you settle for less or PIF. Its their company policy to remove them from your credit reports once they're done.

5 receivables management 200.00 ( insurance cancellation fee 2019 )

Until I got the myfico I didn’t even realize these charge offs were affecting me, CK doesn’t show you this and I recently learned the hard way.

Charge offs
Barclays Bank (2015 ) current balance 2585.00 CL was 2000.00 so it shows 129%
Barclays Bank ( 2015 ) current balance 2612.00 CL was 2000.00 so it shows 131%
Matco tools (2015 ) shows 0 balance on 2 reports and 7500 on Experian. This was a secured loan BTW
Texas Trust CU ( 2015 ) current balance 4995.00

As of right now my UTI is at 80 percent but that’s because my report hasn’t updated showing 4 paid off credit cards yet, and by the end of January I will have almost every other open cc, loan, etc paid off, the only things that will be showing a balance will be these collections / charge offs.

As of right now my FICO 8 scores are
EQ: 583
TU: 621
EX: 613
So there not as terrible as you’d think. But I need them to be a lot higher, I know my mortgage scores are worse.

EQ: 546
TU: 575
EX: 609

I already have a plan to snowball all of my normal payments with in the next month. I’m sitting on the cash to pay 40 % of each collections for a PFD,
I just need help with what to do with the charge offs. Do I leave them alone even though some are reporting a balance? Settle on the ones with a balance? Or PIF even though most are 4+ years.

I really look forward to yalls help I’ve seen y’all do some magical things. And I’ll be open to every aspect of what y’all need.

Thanks!

Welcome @Anonymous . You can tackle most of the collections and have them off your reports. But they dont go against your credit card util %. Whichever CO has the higest interest. Go after it by offering a settlement amount. Start low and see what they come up with. Of course PIF looks better than settled for less for future credit. You didnt say what you can put towards the accounts on a monthly basis. That would help. And what is your states statue of limitations also.

Re: Needing some help, wanting to fix what I destroyed

Anonymous — Sun, 15 Dec 2019 20:25:42 GMT

Thank you for your help! I noticed in what you highlighted that me numbering the collections made it look like I have more then I do. As of right now I have 5 collection accounts. I just numbered them to split them up.

I live in Texas so I’m not sure what the statue of limitations is,

Also once I pay off all my smaller debt in January ( we get qt bonuses so I will be using all of mine to pay off pretty much every loan, cc etc minus the CO ) I will have freed up roughly 1100.00 a month. I make low 6 figures a year. So I can use that amount to do a payment plan if advised? I will also have a decent tax return and also another bonus in April (5k before taxes ) so with that being said I have the means to pay back almost everything within a 6 month pd I’m just wanting to know what would be the best option or how I should go about doing so!

Re: Needing some help, wanting to fix what I destroyed

Anonymous — Sun, 15 Dec 2019 20:49:31 GMT

Here’s the break down for the charge offs I figured I could better explain it.

Cornwell tools, last update 12/16 balance of 0
Barclays Bank last update 07/18 balance of 2585
Barclays Bank last update 07/18 balance of 2612
Matco ( this one confuses me ) last update on EQ 07/18 balance of 0, update on EX 12/16 balance of 7853.00
Texas Trust CU update 10/19 balance of 4995
Credit one bank updated 7/18 balance 0
Kay jewelers updated 06/18 balance of 0

Re: Needing some help, wanting to fix what I destroyed

satio — Mon, 16 Dec 2019 01:58:57 GMT

Here's couple of points of information that may be helpful:

Statute of limitations for debt (which is a breach of contract) is 4 years in Texas and typically that would be calculated from the date of your last payment to the original creditor for the debt. So anything 2015 or older is likely outside the SOL for you to be sued.

Portfolio debt you can look up your account online with them and see if there is any existing settlement offer.

Re: Needing some help, wanting to fix what I destroyed

FireMedic1 — Mon, 16 Dec 2019 10:03:59 GMT

@Anonymous wrote:
Here’s the break down for the charge offs I figured I could better explain it.
Matco ( this one confuses me ) last update on EQ 07/18 balance of 0, update on EX 12/16 balance of 7853.00
Barclays Bank last update 07/18 balance of 2585
Barclays Bank last update 07/18 balance of 2612
Texas Trust CU update 10/19 balance of 4995
Credit one bank updated 7/18 balance 0, Kay jewelers updated 06/18 balance of 0, Cornwell tools, last update 12/16 balance of 0

Of all the accounts above. What was the DoFD? Was Matco also settled? If so. Dispute EX as so. I rearrainged the accounts. 0's on the bottom. The DoFD will determine when the SOL runs out. Th remaining ones with balances your going to have to come up with some kind of payment plan to get them paid or settled. They are affecting your util for now. The DoFD is whats needed to keep moving forward for now. Last update isnt a key factor.

Re: Needing some help, wanting to fix what I destroyed

Anonymous — Mon, 16 Dec 2019 23:31:46 GMT

Matco was never settled so it’s weird to me that it’s only reporting a balance on 1 report

Here is the list of DOFD
Matco 02/16
Barclays 01/16
Barclays 01/16
Cornwell 02/16
Texas trust CU 08/15
Kay jewelers 01/16

Hopefully y’all can give me some insight on how to attack these.

Re: Needing some help, wanting to fix what I destroyed

FireMedic1 — Mon, 16 Dec 2019 23:43:33 GMT

Last question. Whats the SOL in your state.

Re: Needing some help, wanting to fix what I destroyed

Anonymous — Tue, 17 Dec 2019 01:54:21 GMT

In Texas I believe it is 4 years

Re: Needing some help, wanting to fix what I destroyed

silver_idle — Tue, 17 Dec 2019 02:38:59 GMT

@Anonymous wrote:
In Texas I believe it is 4 years

Its 4 years for collection of debt or breach of contract.

Re: Needing some help, wanting to fix what I destroyed

Anonymous — Tue, 17 Dec 2019 14:00:53 GMT

So to my understanding that means the creditors can’t sue me therefore if I was going to go for an fha loan the CO wouldn’t be an issue, the only one I really have considered settling now is the TTCU only because it still reports a balance every month to all 3 credit bureaus although it’s outside of the 4 year SOL

Re: Needing some help, wanting to fix what I destroyed

KJinNC — Wed, 18 Dec 2019 00:41:57 GMT

You may be aware already, but in case you're not, settling a debt will show it as paid but will leave it on your CR, with a note saying that it was settled. That is better than not dealing with it, but will still be a negative until it ages off. If possible, you may instead try to "pay for delete", which is an agreement you make that you will pay them X amount and in return, they will remove the item entirely from your credit. As somone pointed out, one of your creditors essentially does this by default, but others do not. I would suggest trying that before simply settling. It's up to the creditor if they are willing to do it. Nothing forces them to, but, nothing prevents it, either, despite what they may sometimes say.

If you do PIF or settle, all is not lost, because you can still send goodwill letters (GWL) to ask them to remove the account entirely. It may be worth looking up "gwl saturation" or "goodwill saturation" on this board.

Deciding to do this and taking realistic stock of your situation is the biggest step, so congratulations for that, and I look forward to seeing your success story unfold!

Re: Needing some help, wanting to fix what I destroyed

Anonymous — Wed, 18 Dec 2019 01:08:43 GMT

I appreciate your help, currently the 5 accounts in collection I have pfd letters sent to all 5, 2 of them I payed off today and I’m currently waiting on midland funding to mail me back! I found that trans world doesn’t do pfd,

I’m wondering what to do with the charge offs I also have on my account, some are reporting balances some are not.

Re: Needing some help, wanting to fix what I destroyed

KJinNC — Wed, 18 Dec 2019 01:51:32 GMT

Charge-offs are severe, even moreso than collections. I would approach them the same way, attempting PFD or GWL, whichever is applicable. I guess you can theoretically PFD if the balance is zero, but that seems a bit weird (more like ransom), so probably GWL territory there. I had a utility company charge-off (moved a few years ago and apparently missed the final bill). I paid it in full and then began a GWL campaign. I was told over and over that they couldn't delete it, but finally, I guess the right person opened my letter, and they deleted it.

Re: Needing some help, wanting to fix what I destroyed

Anonymous — Wed, 18 Dec 2019 03:04:03 GMT

Good advice, I should have all the collections delt with by January, I planned on working on the charge offs, or atleast the ones with a balance starting in January, the only one that still reports a balance every month is Texas trust and the dofd was in 08/15 so it’s beyond the 4 year mark, but I planned on trying to settle with them so I could be done with it. The balance is 4995.00 what do you think a good settlement to fight for would be? Given the age and what not

Re: Needing some help, wanting to fix what I destroyed

FireMedic1 — Wed, 18 Dec 2019 10:37:34 GMT

Its lets make a deal time. Offer low say 30% and see what they come up with since its past to SOL.

Re: Needing some help, wanting to fix what I destroyed

Anonymous — Wed, 18 Dec 2019 23:06:35 GMT

So I should offer 30% on the charge offs that show a balance?