My credit is a disaster HELP!!!!

[Kevin5974]

Hello Folks,

My credit sucks and I am trying to figure out where to begin. You guys are gonna laugh at how deep I've gotten myself so please list any suggestions. I'm game to try anything.

Card             Balance            Limit              Notes                                   Opened

Cap1             198                   200               Pays as Agreed                    9/04

Cap1             495                   500               Pays as Agreed                    9/05

Chevron        300                   300               Pays as Agreed                  12/06

Crown Jewel 140                 1500               Pays as Agreed                  11/06

First Premier 240                  300               Pays as Agreed                     1/07

First Premier 240                  250               Pays as Agreed                     3/06

Ford Credit        0               12750              Paid 30 day 11/05                  7/05

HSBC            491                   500              Pays as Agreed                   11/05

Best Buy       240                        0              Current, 30 day 12/05          10/05

Macys           350                    400              Pays as Agreed                    10/06

Hooter's        750                    950              Pays as Agreed                    11/06

Total Visa     280                    350              Pays as Agreed                      2/05

Tribute M/C   480                   500              Pays as Agreed                     10/05

Wells Fargo22000                24000           Pays as Agreed (AUTO)        11/06

Zales             322                  400               Pays as Agreed                      4/07

COLLECTION  $695    DATE OF 12/05, REPTD 3/06 AND 1/07

I have over 100 inquiries and don't even know where to begin or how the hell to get out of this. Please help!!! Which should I pay off, which should I close??? I need someone to just help me jumpstart...Is debt consolidation a possibility?

[sl]

I would start by pull your CR from all three CB's.  Go through it and outline which items are correct and which ones need to be disputed.

I would not close any accounts as that will lower your FICO score.

With the collections - write a PFD letter - several good examples on this board.

For the late payments - try a Goodwill letter and make it heartfelt.

Dispute any items are not reporting correctly.

What are the interests rates on accounts you have open?

But most important...don't beat yourself up over the Credit Repair process.

We are all here to help you with what ever advice we can share.

Also what are your FICO scores?

[sl]

And NO!!!!  We would never laugh at you, we are all here for the same reason...Credit Repair.

Message Edited by sl on 06-06-2007 01:49 PM

[Anonymous]

I am not a pro at this by any means, but looking at what you posted....
Almost all of your credit lines are almost "Maxed Out."
That is the biggest issue that is hurting your credit score.

You have done a good job on paying your accounts on-time. Don't let that slip or change for anything!!!

Start with the "smaller" one's - the $200-$400 limit ones and get them below 30% of the limit, in terms of your balance.

For a total of about $1750 you could get 7 of your accounts (trade lines) under the 30% mark. That would only leave 4 that are have high Balance-to-limit percentages.

By doing this you will pretty quickly be able to raise your credit score.

You could also put a 90day or 1 yr hold on anyone pulling your credit with each of the CRA's. If you do this for one year, your inquiries will drop dramatically, as the inquiries will only stay of your report for 2 years.

I hope this helps, but this is how I would START to fix the credit scores.

[Anonymous]

First off take deep breaths, it's going to work.   First thing I suggest is to go to your local bookstore and purchase Dave Ramsey's  Total Money Makeover.   You can do this yourself.  It's going to be long and hard but you can do it.  

You need to sit down and pull up your last three montly statements from your bank account and see where you are spending the most friviolus, eating out, etc.  You are going to have to make some changes.    Start with maybe downgrading cable, shut off one of your phones if you have both a cell and a land line,  if you have cable or dsl internet you may want to swithc to dial.  You need to find extra cash, a second job maybe.

I would  do the snowball effect in paying down your debts.   Quick explanation :  When you find the extra money  apply that to the amount you are paying on your smallest debt and when that is paid off take that total amount you have been paying and apply that the amount you are paying on you second lowest debt amount, and so forth and so forth. 

I would first take care of the collections but at the same time don't let any of your current ones fall into collections. and keep that auto payment current.     It looks more scary that what it seems .  It's only $4,286 in current debt  and $4,981 counting collections, of course this isn't counting you car payments, don't worry about that just keep it current .   Overall it not too bad.   Definilty go out and buy the book, it's worth it and you will have this kicked before you know it.   The amount of debt is perfect for the Snowball Effect.   Some wil say pay off the higher interest first but I subscribe to the idea of paying off the debt with the smallest balances, so by the time you get to your higher balances your snowball will be large enough to make a huge dent into it.  Plus you will see results quicker which is a great motivator to keep you plan going.

I would then start the closing process of all those crap store cards.   Right now don't even worry about your FICO score, worry about that later,  your focus and concern should be to your current financial state .  Once you have everything cleaned then go about repairing your FICO score.    At the end I would close out about 90% of your cards,  ALL  of you store cards and keep one of your Cap I and the HSBC.    Too many card causes too many problems, too many to try and manage.  

[Anonymous]

---

Kevin5974 wrote:

Hello Folks,

My credit sucks and I am trying to figure out where to begin. You guys are gonna laugh at how deep I've gotten myself so please list any suggestions. I'm game to try anything.

Card             Balance            Limit              Notes                                   Opened

Cap1             198                   200               Pays as Agreed                    9/04

Cap1             495                   500               Pays as Agreed                    9/05

Chevron        300                   300               Pays as Agreed                  12/06

Crown Jewel 140                 1500               Pays as Agreed                  11/06

First Premier 240                  300               Pays as Agreed                     1/07

First Premier 240                  250               Pays as Agreed                     3/06

Ford Credit        0               12750              Paid 30 day 11/05                  7/05

HSBC            491                   500              Pays as Agreed                   11/05

Best Buy       240                        0              Current, 30 day 12/05          10/05

Macys           350                    400              Pays as Agreed                    10/06

Hooter's        750                    950              Pays as Agreed                    11/06

Total Visa     280                    350              Pays as Agreed                      2/05

Tribute M/C   480                   500              Pays as Agreed                     10/05

Wells Fargo22000                24000           Pays as Agreed (AUTO)        11/06

Zales             322                  400               Pays as Agreed                      4/07

COLLECTION  $695    DATE OF 12/05, REPTD 3/06 AND 1/07

I have over 100 inquiries and don't even know where to begin or how the hell to get out of this. Please help!!! Which should I pay off, which should I close??? I need someone to just help me jumpstart...Is debt consolidation a possibility?

---

I'm not sure I get what your problems are here??? Why on earth would you have 100+ inquiries? I have to assume that they are not all hard inquiries, more likely monthly check via SOFT inquiries. Your total debt load does not look high. Just pay your balances down to appropriate levels and be happy.

Try to negotiate a PFD with the collection account, that id definitely creating problems for you. But more than the collection, the overall UTIL is the only thing hurting you here. Why the desperation in your OP?

Take Care.

Rob

[Anonymous]

---

sl wrote:

I would start by pull your CR from all three CB's.  Go through it and outline which items are correct and which ones need to be disputed.

I would not close any accounts as that will lower your FICO score.

With the collections - write a PFD letter - several good examples on this board.

For the late payments - try a Goodwill letter and make it heartfelt.

Dispute any items are not reporting correctly.

What are the interests rates on accounts you have open?

But most important...don't beat yourself up over the Credit Repair process.

We are all here to help you with what ever advice we can share.

Also what are your FICO scores?

---

He is beyond the point of worrying about his FICO  score, he needs to get his finances turned around.    And if that means closing out alot of the cards, then so be it.  His respondbility right now should be to his financial future and his family.   Worry about FICO when you get yourself turned around.

[Anonymous]

What are your scores?

[Anonymous]

I guess I see that there is a significant spending issue that needs to be addressed ASAP... But luckily the limits are all low. My gosh it seems like you get new cards every couple of months and begin to use them as soon as you get them...

That is something that can be fixed easily. Prioritize the credit accounts based on frequency of usage. Select the top three from your list, place them in your wallet. Shred the others, and pay them down as rapidly as you can. Once they are paid, you won't even need to think about them any more.

[Anonymous]

I would go even one step further and just begin closing out 90% of the cards,  spending is a major issue and trying to managing WAY too many credit cards.   You are very lucky that the limits are low.

Definitly need to make some signifigant changes in handling financial affairs.    Just keep two of the cards and try to discipline yourself from there.  

Again no worries, most us have and still are in the same shoes you are.