How to go about paying off debt

[Anonymous]

One thing to consider as well is to use the money to PFD the bad accounts. This will save money and improve scores, expecially if they are recent. Most likely you can settle them for a little less (as long as they agree to delete in writing of course) and stretch that money out a little further. Just a thought. Congrats on the windfall and good luck with your scores!

[Anonymous]

Yeah, I was just messing with you. I have found an almost 8% CD. This bank invests in global markets and offered a 7.5% 5 year CD but I didn't know the bank and was hesitant. Now as far as stocks are concerned, I haven't figured out the trick on how to pick the right ones. Right now my current yield is more like -8%!  

[Anonymous]

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orhippychic wrote:

One thing to consider as well is to use the money to PFD the bad accounts. This will save money and improve scores, expecially if they are recent. Most likely you can settle them for a little less (as long as they agree to delete in writing of course) and stretch that money out a little further. Just a thought. Congrats on the windfall and good luck with your scores!

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Sorry, but I'm fairly new to the forums, so not familiar with ALL the acronyms, yet, but what's a PFD?  I get what you're saying, but just curious about the acronym.  Also, how do I go about doing this?  Do I call them and request that they send me a letter stating that with $XX.XX payment received by XX date that the item will be removed from my credit report or do I send them a letter requesting this?  Just curious, I've never done this before, so I want to make sure I go about it the right way.  Thanks for all the help, everyone.  Much appreciated.

[Anonymous]

disregard the question about the acronym...I saw the sticky about abbreviations and found it in there...still curious about how to go about doing this, however.  Do I call them or do I send them a letter or what not.  How do I do this, please let me know.  Thanks.

[Anonymous]

Absolutely do not call. They will lie and promise and then stab you in the back when they get their money. There are threads that go into this in detail but here's the basics.

1. Send them a letter stating that you will pay X (state a dollar amount that you are comfortable with) under the condition that they remove any and all references to the debt from credit reports and consider the debt PIF.

2. Send this letter to them Cert Mail Return Rcpt Requested.

3. Wait up to a month for an answer.

4. If no answer or denial, then send again and offer a little more money (if you offered less than 100% of what was owed, otherwise just send the offer again.

5. If they accept, only comply if it is in writing and explicitly states that the entry will be removed. If you aren't sure if the letter is explicit enough, post it here and let the guru's read it.

6. If the letter is good, pay them ASAP with a money order or the like. Keep copies of everything, and check your reports to make sure they comply.

Here's the thread that goes into more detail. The letter rocks and I see success stories on here all the time. Good luck.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2659

[Anonymous]

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orhippychic wrote:

Absolutely do not call. They will lie and promise and then stab you in the back when they get their money. There are threads that go into this in detail but here's the basics.

1. Send them a letter stating that you will pay X (state a dollar amount that you are comfortable with) under the condition that they remove any and all references to the debt from credit reports and consider the debt PIF.

2. Send this letter to them Cert Mail Return Rcpt Requested.

3. Wait up to a month for an answer.

4. If no answer or denial, then send again and offer a little more money (if you offered less than 100% of what was owed, otherwise just send the offer again.

5. If they accept, only comply if it is in writing and explicitly states that the entry will be removed. If you aren't sure if the letter is explicit enough, post it here and let the guru's read it.

6. If the letter is good, pay them ASAP with a money order or the like. Keep copies of everything, and check your reports to make sure they comply.

Here's the thread that goes into more detail. The letter rocks and I see success stories on here all the time. Good luck.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2659

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Awesome.  Thank you so much for the assistance.  I saw the letter post, but wasn't completely sure on the actual steps involved in it.  I'll start working on the letter and as soon as we get the money in a week or two I'll send it out.  I'd like to pay for less than full as a good chunk of the total payment is all the service charges and late fees that they charged me and, even though I came across hard times and couldn't pay for it, I don't feel that I should be paying them about $500 of an $1850 debt towards nothing but fees and such. 

Do you think an offer of $1300 for an $1850 debt would be accepted?  The company is Citifinancial and they seemed to me to be really horrible when it comes to working with the customer to help resolve issues, based on my experience.  I CAN pay them in full, would just prefer not to as that $500 can go towards another debt to pay off.  Let me know what ya'll think I should offer them and thanks, again, for all the assistance ya'll have provided me.  I really appreciate it.