@hippychic823 wrote:
No savings yet but I do have a retirement acct with about 4K in it but I really don't want to touch that, especially if using it to pay the collections isn't going to help my score. I have about a couple hundred extra that I can use to pay. The only one able to PIF at them moment is the Amer Eagle collections that is $244.00. I did make arrangements with PRA to pay $50 monthly on the Best Buy since it is in their litigation department and I fear they will end up suing me anyways and because it's my biggest balance other than my foreclosure.
I just keep thinking that if I file BK at least I'll have everything paid off and it would be better for my credit in the short term. But, long term it would be best to pay the collections and wait for them to fall off. Either way, I'm screwed. With scores in the low 400's nothing I can do at this point will help until they all fall off. It's just unfair that doing the right thing and paying them off serves no more benefit, score wise, than not paying them.
After they are paid you can try to goodwill them away.
Unfortunately for mistakes and damage this recent, the only thing you can do is chip away at them with what you can afford and be patient.
No applications for awhile, but maybe that's okay. Give yourself some time to regroup while you are rebuilding. Over time, the fact that you paid them will matter. Whether that's because they get removed in good faith, or just because an aged paid collection looks better than an unpaid one.
Chin up. There's a future in the distance.
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I would PIF that collection since you are able. Don't touch your 401k, you need that to start growing ASAP for your retirement. In fact, I hope you are putting at least 10% of your income into it.
You didn't mention how much money you have left over each month, other than the $50/mo you have committed to the Best Buy account, so it's hard to advise how to pay off everything else. I'd keep in mind that everything that is recent is at risk for a lawsuit.
