I think I'll start now...PLEASE HELP!

[Anonymous]

Taking care of my credit and move beyond all the dumb things I have done in the past.

Please, comment with good opinions as to my problems and plans below. thanks 

PROBLEM 1) I recently voluntarily had my car reposessed. It shows on my credit as an outstanding balance of about 13,500 which was my total payoff. I know I probably should pay the balance, however, the high payments and balance is part of what was killing me.

PLAN ) So my plan is to not pay the balance. I now own 2 vehicles with 0 payments and plan to keep it this way for quite some time.

PROBLEM 2) I have been in foreclosure for a couple months on my 80/20 home loan. Balance on the 80% is around $88,000 (+120 days late), balance on the 20% is around $22,000 (+120 days late).

PLAN ) Paid $2,300 for Attorneys fees to pull out of foreclosure with the agreement from both mortgage companies that I start again making regular payments 1 MARCH 08. After 3 payments ontime will adjust my mortgage and put the late balance to the back of the loan and bring me current.

PROBLEM 3) I have 1 credit card, which of course just like everything else is overdue. Credit limit is just $250, and it has gone to collections as an open account with a balance of $410.

PLAN ) I plan to contact the creditor and collector and to pay the balance to $0 bringing it out of collections and current. I plan to not use it and keep the balance below $50 if not $0 at all times. I really don't need it or use it.

PROBLEM 4) Local gym that I never went to, I guess I just decided not to pay them at some point and now have outstanding balance of around $1200. Its not yet in collections but probably should and will be.

PLAN ) Don't really have one yet, I just pulled my report and was an immediate reminder of OOPS I forgot about this one. I guess I'll contact them and attempt to get current and pay it off.

PROBLEM 5) 1 Collection for $143 for something I know nothing of, I'm sure its probable legit knowing my history, however.....

PLAN ) I don't know where to start. even to pay it if I have the $.

Thats basically all that remains on my report and any of your opinions as to where I should go from here and where I may end up, feel free to assit. MYFICO right now is 443. what do you guys think, feel free to throw some punches, just follow them up with something helpfull.

Thanks

[braznyc]

I have no real advice at Problem #1, as I'm clueless on how auto loans, repossesion work, etc. Hopefully someone who doesn't will respond.

@ Problem # 2, It sounds like you're doing the right thing, perhaps seeing if it's possible that they'd knock off the lates once you get past those 3 payments.

@ Problem @3, Do you know if the CC still owns the account and it was just placed with the CA? I would work with the CC if they still own it, see what I can do to get back in their good graces. I'd also pay down the balance, like if you agree to that would that bring your account back to them, etc. I would call them first if they still own it, and not the CA. If you have the money then paying that balance down below the limit would be a good start. I'd also see if they'd be willing to delete the lates, maybe you can site your good history prior to this and see.

@ Problem # 4 I would contact them too, if you know that's the right balance etc, a payment plan before collections is always better - imo.

@ Problem #5, I would DV them if you're not sure about the debt etc. All this will do is validate the debt, if it is then you have to look at the SOL etc, but find out before paying anyone.

As far as where to start, well I think you're on the right path, the man thing (imo) is you have outlined all of your credit issues and you're finding ways to tackle all of them, which is always a good start. Good Luck.

[Anonymous]

LONG TIME COMING.....AND VERY EXCITED TO RELEASE TO YOU GUYS MY PROGRESS.

EQ then  443

TU  then  436

NOW

EQ  623

TU   639

DAYUMMMM!!!!!!!!!!!!!!!

I have not arrived, HOWEVER,........ PROGRESS HAS OFFICIALLY ARRIVED!!!!!!

I followed through on every plan I initially wrote concerning my problems at that time. There were a couple more bumps along the way, so, my credit has gone up and down as I have updated and continued to pay down prior debts.

FOR ME, at that time, I had a PAYMENT problem, and I was living beyond my means. I did not have a ton of debt, I did however, have every other problem.

The best decision I made, ironically, was Voluntarily having my car reposessed. It opened a door for me financially to give me room to start  to make changes.

AGAIN, FOR ME.......having that car reposessed while I already had horrible credit opened up a refreshing thought to an end of an already tarnished past and allowed me to enforce my plan through my current finances.

Just wanted to throw out a success story that has been a long time coming and ALOT of sacrifices made to ensure myself of my goals, which are within reach now.

THANKS EVERYONE!!!!!!!

[RobertEG]

I would not just ignore problem 1. It is not gone.  When they repossessed the car, they most likely sold it at auction to retrieve at least a part of the debt, but you are still responsible for the remaining difference.  Repossession does not simply remove the debt.  They can sue you, and obtain a judgment for the remainder, accrued interest, and legal fees.  It is dangerous to just ignore it.  A plan to ignore debt under the assumption that it wiped out the debt, is seriously flawed, IMHO.

As for problem 3, I seriously doubt if the OC account is still "open" for any use if it has gone to collection.  What is probably open is only their claim for the debt or the collection account of the debt.  If you pay it, I doubt seriously if they will just let you go on your own way, and use it again as an open line of credit.

As for problem 4, you can expect to hear for a CA very soon.  Try to PIF the OC before this happens.

AS for problem 5, if they posted to your CR, they were required to sent you a dunning notice, so you should have been advised who the OC is.  What the debt is should not be a mystery.

Message Edited by RobertEG on 11-26-2009 06:20 PM

[Anonymous]

Problem 1) I did in fact ignore it......initially, to give me breathing room, once it went to collections, i set up a payment plan to pay the difference from the sale. $6700. paid in full. shows $0 balance on my credit report.

Problem 3) The account was definately not still open. It was closed. First Premier CC. paid it to a $0 balance.

In addition, applied about 8 months ago again with FP, accepted.....and have kept it below $50 ever since.

Problem 4) Local gym dues, Initially $1257..........paid $400 to the collection agency and settled with them. Balance is $0 and acct is closed.

Problem 5) paid off. balance at $0. was a cell phone bill as I found out, through U.S. Cellular.

I can see where you would draw conclusions through my most recent post. I did not outline anything as to what ended up happening with each account. Too much to write.

everything on my credit report is in good standing now and or paid to a $0 balance.

[Jazzzy]

aaron...you've made great progress. Congratulations!

It's not easy, but you've demonstrated what hard work and time can accomplish.

Feels good...doesn't it?

[RobertEG]

WOW!

Im am extremely impresseb with your efforts!

I think you now know some of the ins and outs of credit scoring, and more importantly, financial impacts.

We all have pimples of acne in our credit reports, or else we would not be here.

You understand, and that is a gigantic first step.