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Good Day, everyone:
I am a little overwhelmed by all of the information on this board, so I wanted to be pointed in the right direction. Currently, my credit is a mess. I have 2 charge off's with Rise and Cash Central (both payday companies) that total almost $10k (with another $2.5k) on the way. I have received loans from these companies before and have paid them off in the past, but hit a rough spot in the last year and could not pay them (thus, my current situation).
I also have a bunch of LP's on my credit report that are further damaging my score. I will start a 2nd position on Monday and need help on where to start. I may have to come back and make some updates to this post, but WHERE DO I BEGIN????
When you say that the third one is one its way? Do you mean its already been CO from the bank and just hasn't hit your reports yet? If that's the case then the damaged has already been done. Just know that your scores are going to be in the tank for a little while. The only course you have if these are all correct and just due to your hardship is PFD letters. Use that second job and save up. Don't bother calling the company or working out a payment plan if they are already on your report as a CO. Once you have enough money to pay off one of the loans send a PFD letter along with a money order/cashiers check to them. Saying that if they cash it, they are agreeing to remove themselves from your report within 30 days. Because these will probably reporting each month until they'er paid. You want them gone after you pay them not just at a zero balance. And then repeat. P.S on the off chance that the third loan isn't in CO status yet. Call the company and do everything you can to keep them from CO. Make a promise to pay, payment plan, anything to keep that loan from negatively impacting your report. The LP's are secondary to the CO's. Once the CO's are off your report the damage done from the LP's maybe minimum.
When did you first become delinquent on the accounts, and thereafter remained delinquent up to their taking of the charge-off?
Is the creditor still reporting a balance on the account, or have they updated to $0, which would indicate that they have sold the debt to another?
Those two pieces of info are first needed to do an initial assessment ........
Since making this original post, my credit has gotten worse. Currently, my credit scores are:
Transunion - 496
Equifax - 492
Experian - 498
This is ugly and terrifying all at the same time. I managed to pay off my car, but I am behind on some student loans and I have the collections on my credit that total $9,119.
My credit card debt totals $5,020.46.. Most of them are in credit counseling, with the exception of 3 accounts. I cry over this most days. I never thought I would be in this situation at this point in my life.
I am behind on my student loans (private) by $1,084, but there is no deferment time left. I lost the second job because it turned out to be temporary. Right now, my current income (even though I work in higher education) does not leave any extra money.
Where do I start with fixing this?
@Anonymous wrote:Since making this original post, my credit has gotten worse. Currently, my credit scores are:
Transunion - 496
Equifax - 492
Experian - 498
This is ugly and terrifying all at the same time. I managed to pay off my car, but I am behind on some student loans and I have the collections on my credit that total $9,119.
My credit card debt totals $5,020.46.. Most of them are in credit counseling, with the exception of 3 accounts. I cry over this most days. I never thought I would be in this situation at this point in my life.
I am behind on my student loans (private) by $1,084, but there is no deferment time left. I lost the second job because it turned out to be temporary. Right now, my current income (even though I work in higher education) does not leave any extra money.
Where do I start with fixing this?
Without financial ability there is not much you can do but keep up with your CC payments and pay what you can on your SLs to get caught up. Collections will just have to wait.
First thing you should do is get/set up a budget if you haven't yet. I use a technique called "zero based budgeting" There are plusses and minuses to every budgeting system, but it's important that you see where all of your money is going to see where you can optimize. I know you are probably really short on cash and struggling, but it will still help you exert some control and stop any bleeding you aren't seeing.
I use an app/service that I pay for, so that might not be best for you - but you can google around for some free excel sheets or other apps. You can even use a notebook and pencil if that's the best method for you (and I cannot stress this enough, you have to find a system that you can stick with - I used several before settling on YNAB).
You are already clearly looking for additional jobs, and I encourage you to do so, to get some cash flow in that will help you out. There are also forums and lists (like poverty finance on reddit) that can help you find ways to spend as little as possible (and still enjoy life).
Remember that finances are > FICO (though we all know that it is expensive to be poor and/or have poor credit)
Your #1 priority right now is getting additional cashflow. If you have a reliable car, sign up for some delivery services such as Favor, Uber Eats, or even drive as Uber driver. Or even take jobs at restaurants, whatever it is.
I got myself in a situation like yours before. I ended up working 14 hours a day, 7 days a week for 2 years to get everything paid off. The job will keep you busy, and once you got the money to start paying, you will feel better about yourself and the situation.
You can list your accounts, limits, balances, income, and expenses and we can possibly help you create a budget, but I second YNAB which was mentioned above. I used it to go from living paycheck to paycheck to paying a month ahead in a couple of months.
@DR527 wrote:...send a PFD letter along with a money order/cashiers check to them. Saying that if they cash it, they are agreeing to remove themselves from your report within 30 days...
I am curious as to how you prove you made this a condition of accepting payment if the payment is accepted and the derogatory tradeline is not deleted?
@Medic981 wrote:
@DR527 wrote:...send a PFD letter along with a money order/cashiers check to them. Saying that if they cash it, they are agreeing to remove themselves from your report within 30 days...
I am curious as to how you prove you made this a condition of accepting payment if the payment is accepted and the derogatory tradeline is not deleted?
These kinds of selective endorsements if put on the back of said MO or in a letter are not legal, the check will be deposited anyway whether or not they comply and delete the TL.