How to Proceed

[Anonymous]

Hello All,

I am trying to get some guidance on how to proceed with improving my credit. I am divorced and score took a leap afterwards. Since, I have been trying to rebuild and get back on track. I have sent out letters disputing inaccurate information and making arrangements on the ones I owe. So far I have 2.5 debts that are paid off...let me give you some insight so you can better assist with my situation. 

Scores to this date: 

TU-620

EQ-613

EX- 618

Discover IT (new) Limit is $1250 Bal. $1127.03 (due to Christmas use) :-( (making a payment 2/6 of $375)

NFCU secured Limit $200 Bal. $48.39 (will be paid to $0 2/6)

Installment loan $2000 Bal. $1595 (never late) $180 a month

Self Lender $500 (never late)

Collections:

Credit One Limit $400 Bal. $942 (how did it get so high :-)) I believe they are trying to garnish my pay

Synchrony Bank $500 Bal $569 (Walmart)

Capital One $750 Bal $352.03 (settled for $352.03) paid 52.03 will ACH $300 on 2/6 to be $0

BOA (closed/paid)- just paid in full $344 (last payment made 1/24)

Fingerhut(closed) Bal $1148 will try to negotiate a settlement

First Progress (closed/paid) paid off $159 11/19

Dept of Education- $128,000  student loans for me and my daughter (still in 6 month grace period) not due to start paying til 4/11/20 but opted for income-driven repayment plan.

Single mom 5 dependents 2 are considered adults now, income $51k.....how should I tackle this? Thanks in advance

[Girlzilla88]

Start slowly but surely the best place to start is to start!    Knock off some lower amount ones first (start with your collections while you keep making a little over minimum payments on your cards (IF you can do more on your cards while knocking off collections of course do more on your open)      But once you get one off you will feel more encouraged and you will see progress which will help keep you going.     Don't try to do it all at once or you will get overwhelmed and it may put you back in a place like you are starting so this is what I recommend and you will see your score growing in a few months especially if you can get them PIF and knocked off completely from your Collections/Report! 

[Anonymous]

Thank you so much for your advice. I will definitely follow, and you are correct...I was absolutely starting to overwhelm myself in becoming too obsessed with trying to pay everything off at once just to neglect my regular household bills, but that couldn't happen so slow and steady moving forward.

[Anonymous]

Hello,
What is the breakdown of the $128000 in student loans, which I assume are federal? What are student, plus etc.
Which IDR plan are you on?
Thank you.

[Anonymous]

Hi,

What do you mean by breakdown? All are student loans combined with Parent Plus loan for my daughter....all reports show installment loan as current since I am in a grace period until 4/11/20. I applied for the IDR, but was told that since I am in the grace period I could not get an estimated amount of my monthly bill. They have not even given me the type of IDR I qualify for as of yet, so I guess it's just a waiting game with Dept of Education. Yes, they are all federal.

[RSX]

After the Disco $375 payment, pay minimums on that one + $25

start next with the Walmart. You have to get that one below 100% I would try to pay that off fully

then move onto the credit one

it will be slow , but you are already making progress.  And just do Xmas presents for the little ones next year.  You need to be financially stable, to support them best. Adults don't need presents.  

good luck to you!