@Anonymous wrote:
Just curious what happens if you have excellent scores, 750 and above, then you go 4,5 or even 6 months without paying and then pick up again as if nothing happened. I know 90 days seems to be the magic number when your scores drop like an anvil, but how long before it kicks back....if EVER?
It kind of sucks that you can pay for decades and never ONCE be late in your entire life, but then something comes up where you have to go a few months without paying and then you go right back to paying again, but from a scoring standpoint, it’s as if Armageddon had started...
What happens is your scores are wrecked and stay wrecked for years.
@Anonymous wrote:
LMAO! I loved the car analogy IV. I have to use that one in the future, but I’m going to claim credit for inventing it
Take it! (Please! I certainly don't want any credit/blame for bad car analogies!)
@Anonymous wrote:
Because either way you slice it, it is absolutely NOT the same thing to go what I am predicting to be 120-150 days late before I start again and then COMPLETELY pay back the ENTIRE balances plus all interest and penalties, as the guy who decided to just default and take off to Mexico!!!
Thing is, though... from the lenders' point of view it IS absolutely the same thing.
By 90 days, and certainly by 120-150 days, they're already assuming that your accounts are a total loss. Just like that runner to Mexico!
And even if you do end up paying the whole thing off, penalties included...
@Anonymous wrote:
And if you think that’s fair, then I would have to wholeheartedly disagree with you! And to be clear, I have not as you implied “DEFAULTED”, I am in fact presently in default, and there is a huge difference. When I start paying again and get everything current, I no longer will be in “default”
...it won't probably won't be to the original lender.
Because by that point you have defaulted. They will have started collections, tried garnishments, marked the accounts as write-offs...
...and probably sold off the bad debt to a collection agency at pennies on the dollar. They aren't waiting around knowing that you plan to pay them later.
If/when you pay off the remaining debt, it'll be to the collection agency (who will be VERY happy to collect the whole amount, plus fees from you - for a huge profit on their investment), but the original lender(s) will still have taken the loss.
@Anonymous wrote:
So I think the more proper car analogy is comparing me to having ONE speeding ticket, to the guy who is going to get a dozen more speeding tickets because he continues to speed and I don’t. In which case his drivers license will be in much worse shape and his insurance will cost much more. With that in mind, my score should reflect better for me and not get worse as the guy who keeps on speeding...
Except that each additional 30 days late (per account!) is basically those additional tickets. And each one (30-60-90-120-150) is, metaphorically speaking, breaking the speed limit by more each time. Eventually, your license gets revoked and you get banned from driving.
Getting a single 30-day late is the "ONE ticket" scenario - your 120-150 day estimate is repeatedly treating a 25mph school zone like the Indy 500. (ie: say goodbye to your license for quite some time.)
...ok, forget the car analogies. For your actual issue - have you communicated with your lenders, told them plainly what's going on?
If you can setup some sort of very minimal continuing payment plan, with a timeline for the full repayment, they MIGHT keep your accounts in-house and not sell them off. That way, you'd at least avoid the EXTRA negative items that would kick in with the collections accounts showing up on your reports, and you have a chance (if a small one) of them doing a goodwill removal of some or all of the lates at some point after your full repayment.
Not talking to them at all will let them assume that you've just pulled a "bust out", and they'll never hear from you (or get a dime) again...
