Good day MyFICO Community. It’s been a while since I posted but I was laid off back in September of 2016 due to a RIF and I have fell to some financial difficulties.. I have been paying my bills with my major credit cards. I tried my best with my minimal payments for most of my cards until i found a permieant postion as of Oct 2017. wasnt making as much as i was before but i still tried. I went from having a high 700 credit scoe to a 590. Now im at a 630 and i have been stuck here for alomst a year. im just looking for some advice on what i can do now. i havent had any missed payments since 2017. below is a list of my accounts and balances
***Open Accounts
Capital one credit card - $0 balance , $500 CL
Capital One Quick Silver Credit Card- $0 Balance $1500 CL
I have 8 Student loan accound all from NELNET Im in school now so they should all be defered
*** Closed Accounts
AMEX Credit Card- $11,400 balance, been paying this down $100 per month Auto payment
Bank of America Credit Card- Paid in full. Still showing up on credit report
Best Buy Credit Card- $1,191 Balance, paying minimum payment of $38 per month Auto payment
Discover Credir Card- $4,798 Balance, paying minimum payment of $142 per month Auto payment
Kay Jewelers- Paid in full. Still showing up on credit report
Macys Credit Card- Paid in full. Still showing up on credit report
NFCU Credit card- $19,400
Wells Fargo Credit Card- Paid in full. Still showing up on credit report
Starting Score: Equifax 582 Experian 610 Transunion 620
I'm sure the rebuilders will be along with some more specific advice than I have, but there a couple things I see here. The one big one is that you're paying 0.76% payments towards over $36,000 of debt every month; that is certainly not a viable solution if you'd like to pay that off in your lifetime. First thing that needs to be done is to rethink your payment plan, otherwise you will not make up any ground and be stuck in this rut indefinitely. The other is that you list your cards as closed. How did they become closed? Did you close them; did the banks close them? Are they closed in good standing, or are they COs still with the OC? Hopefully someone will chime in with good advice on the order of a payment plan, but those are some questions that will probably get asked anyway, so I'll ask them first. I hope you find a solution that works for you to get that debt knocked out and those scores back up!
@Anonymous wrote:OP, you mention that you are a student so your student loans "should be in deferment". You need to make sure of this as soon as possible in case they aren't. I would think that if they are, one would know that they are because one did the necessary legwork and diligence to ensure this. That's a little scary if you don't know they are deferred. Someone will correct this if I'm wrong, but I believe deferred loans still accumulate interest and by the time payments begin, the balances can be a lot higher than what was borrowed. That'll be another financial factor to figure into your payments down the road (if they are deferred).
For unsubsidized loans, yes, they still accumulate interest even while deferred. For subsidized loans, they don't accumulate interest until repayment starts/you're out of deferment
OP, I agree with the others. You need to make much higher payments than you've been making if you hope to pay any of those accounts off any time soon. Amex alone will take you 9.5 years to pay off at $100/month. Is there way you can increase those payments? At least to double what you've been paying. Also, you didn't mention any payment plan for NFCU, and that one has the highest balance. I would try to start working on that as well.
the bank closed all the accounts beacuse i wasnt able to make payment, when i did have enough to pay the balance off, i call and paid in full
i agree, I was doing what i can at the time, I can def pay more then the minimum now. and yes I owe NFCU 19k
@codehavoc wrote:i agree, I was doing what i can at the time, I can def pay more then the minimum now. and yes I owe NFCU 19k
Well then I'd suggest revising your payment arrangements and giving us an updated payment plan to better help you. And like I said, start paying back NFCU because that is a pretty high balance.