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Need Advice!!!

cookie723
New Member

Need Advice!!!

Hello, I am new here.  I am asking for credit advice.  I recently went back to school for my masters.  I paid off most of my bills prior to going.  I was doing fine and paying my bills on time for the first year and a half.  In feb/march of 06 I was flat broke.  I was not able to pay my bills that I had accumulated as a result of grad school.  Long story short, my cc bills were charged off in july/aug and now I have 7 chargeoffs.  I am working now and I can afford to pay the bills off, I just do not know where to start.  I have always had fair to good credit, now since the chargoffs my FICO score is in the low 500's.  How can I bring up my score?  Will it ever be good again? How do I address the chargeoff's? will they ever come off or will it take 7 years for them to go away? Everything feels hopeless.  Any advice would be great, thanks.
Message 1 of 14
13 REPLIES 13
Brammy
Moderator Emeritus

Re: Need Advice!!!



cookie723 wrote:
Hello, I am new here.  I am asking for credit advice.  I recently went back to school for my masters.  I paid off most of my bills prior to going.  I was doing fine and paying my bills on time for the first year and a half.  In feb/march of 06 I was flat broke.  I was not able to pay my bills that I had accumulated as a result of grad school.  Long story short, my cc bills were charged off in july/aug and now I have 7 chargeoffs.  I am working now and I can afford to pay the bills off, I just do not know where to start.  I have always had fair to good credit, now since the chargoffs my FICO score is in the low 500's.  How can I bring up my score?  Will it ever be good again? How do I address the chargeoff's? will they ever come off or will it take 7 years for them to go away? Everything feels hopeless.  Any advice would be great, thanks.



I don't know what creditors you are dealing with but the best place to start would be to call them and see if there is any way you can rehabilitate the chargeoffs.  Barring that, you could pay the collection agency but negotiate first.  NEVER negotiate unless you have the cash to back it up.  Most will settle for half or less of the balance.  Before you mail a thing though make sure you get any agreement in writing.  Some will promise you anything and then turn the tables.  You can request a pay for deletion but those are hard to come by.
 
As humans its funny how we will avoid the problem until it becomes too big to handle.  I know I did.  Make sure your efforts are sincere and explain to the original creditors what your situation was. Even Amex has whats called an Oasis program where they will rehabilitate a charged off acocunt.  It works outr better for the lenders as most of the money doesn't wind up in collectors hands.
Message 2 of 14
Tuscani
Moderator Emeritus

Re: Need Advice!!!



cookie723 wrote:
Hello, I am new here.  I am asking for credit advice.  I recently went back to school for my masters.  I paid off most of my bills prior to going.  I was doing fine and paying my bills on time for the first year and a half.  In feb/march of 06 I was flat broke.  I was not able to pay my bills that I had accumulated as a result of grad school.  Long story short, my cc bills were charged off in july/aug and now I have 7 chargeoffs.  I am working now and I can afford to pay the bills off, I just do not know where to start.  I have always had fair to good credit, now since the chargoffs my FICO score is in the low 500's.  How can I bring up my score?  Will it ever be good again? How do I address the chargeoff's? will they ever come off or will it take 7 years for them to go away? Everything feels hopeless.  Any advice would be great, thanks.


Welcome! Do not get discouraged. You are not alone and do not have to wait 7 years.Try and negotiate PFDs (search for the sample letter) before you send any money!! Your score will be good again. You just need patience and a little determination.
Message 3 of 14
TheNewWorldMan
Valued Contributor

Re: Need Advice!!!

I would try to negotiate them off...if you can't, you may just have to wait.  Not seven years, but it may be two or three before anyone will give you the chance to rehabilitate your credit.  Start with secured credit cards and go from there.
- - - -
in a credit-scoring postnuclear Stone Age...
Message 4 of 14
Neblett
Regular Contributor

Re: Need Advice!!!

Can you explain what you mean by rehabilitating a charge-off?
 
Process?
 
Pros?
 
Cons?
Message 5 of 14
Brammy
Moderator Emeritus

Re: Need Advice!!!



Neblett wrote:
Can you explain what you mean by rehabilitating a charge-off?
 
Process?
 
Pros?
 
Cons?


 
On occasion a creditor will be willing to pull a chargeofff back in from an OCA.  They will then set up a payment plan though you will have no access to the accounts.  Once you make all payments as agreed you wind up with a pristine payment history on said account.

Message 6 of 14
newjbw
Valued Member

Re: Need Advice!!!

 
Sorry!Smiley Tongue

Message Edited by newjbw on 04-30-2007 04:31 PM

Message Edited by newjbw on 04-30-2007 04:32 PM
Message 7 of 14
Boswd
Valued Contributor

Re: Need Advice!!!

Just take it one debt at a time.   Don't worry about your FICO score yet.   Your priority should be getting out of debt first.  Then tackle your credit score.
 
I would use the snowball effect when tackling more than one debt.   Now since these are charged off and are more than likely sent to a collections Agency this will be a little more difficult since all of them are going to want to be first in line to get their money.
 
First due a budget.   Remember your rent/mortgage, utilites, car payments, groceries come first.   Work out your monthly budget from that. ( you may have to scale back some things, like down grading your cable or getting rid of it all together,   having only one phone etc.)    See what you have left over.    Don't call any of the creditor's until you do this first, you have to know how much you can work with and not eat ramon noodles for the next year.
When you call them make sure you have something to give them that day, anything to show a sign of good faith.   Most are going to want 20% down on the balance due to set up a payment plan, you can, as I have even negiotated that to be paid off in a couple of installments. ( example, Creditor wanted $500 down to set up a payment plan, i paid that in two installments of $250)  Once you get into a payment plan start paying that religiously.   Once the first one is paid off,  take the money you have been spending on the first card and add that to the amount you are going to pay on your second card and so forth and so forth.
Don't worry about your FICO score until the debt is under control, then go and work on it.   Also I used Dave Ramsey's Total Money Makeover Book.   He has some off the wall ways about him but in terms of getting out of debt,   he is on the money,  cost something like $25 but it is well worth it.
Message 8 of 14
Neblett
Regular Contributor

Re: Need Advice!!!

I just contacted Sears and they said they have no right or access to my account anymore and cannot rehabilitate the account from the OCA, so I will have to deal with them.
 
Is there any way to request that an account be sold to another OCA?
 
Help!  The OCA (Pinnacle) that Sears sold my account to is harrassing me and uses abusive, derisive language (one "CSR" - term used loosely - laughed at me a few weeks ago because my car was repo'd and said I deserved what I got because of my bad credit).
Message 9 of 14
Brammy
Moderator Emeritus

Re: Need Advice!!!



Neblett wrote:
I just contacted Sears and they said they have no right or access to my account anymore and cannot rehabilitate the account from the OCA, so I will have to deal with them.
 
Is there any way to request that an account be sold to another OCA?
 
Help!  The OCA (Pinnacle) that Sears sold my account to is harrassing me and uses abusive, derisive language (one "CSR" - term used loosely - laughed at me a few weeks ago because my car was repo'd and said I deserved what I got because of my bad credit).


 
That is in blatant violation of the  debt collection contact the FTC and keep a log of your conntacts withe these people making sure you get name etc... give them an estimated time as to when this contact occured and the excat language that was used.

Message 10 of 14
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