Is There Any Point?

Ondi · ‎09-08-2017

Some months ago I lost everything. My job, home etc. When that happened I could not pay any of my credit cards. I owe in total a little over $6000. All of my accounts are now in collection. I just got a really good paying job and I'm back on my feet. I had excellent credit before but what I'm wondering is if it's worth trying to fix my credit when all cards are now in collection or just wait 7 years. It's painful as I worked very hard to build my credit but I'm wondering now that I have collections, even if I tried paying them off it will still show negative on my credit. I don't want to ignore my bills but the chance of having good credit seems small. If I pay everything off, is it possible to have good credit again with paid collections even showing paid on my report?

Anonymous · ‎09-08-2017

7 years is a long time if you are at the beginning. If you are closer to the end, then waiting might not be that bad. If you have the funds to pay the collections, try PFD. That will help rebuild your credit. It won't happen overnight. But, it definitely won't take 7 years to see your credit move in the positive direction.

Anonymous · ‎09-08-2017

Have you considered BK?

ulyssesmama · ‎09-08-2017

I'm fairly new to rebuild myself so I can't answer the question whether or not to try. But if you do go bankruptcy route, I would get a secured card before u file. Actually I would get a secured one now whatever u decide, you will start showing a positive trade. That's what I did before I filed in 2011 and I think it helped. When I came out of chapter 13 I was showing a positive trade and was able to get a capital one card 2 months after discharge! I went with allied bank. They didn't have a high apr and no annual fee, but they never did graduated me. I actually still have that card (in the sock drawer tho) because it is my longest trade and I think cancelling them would be bad for my score. Good luck!

Anonymous · ‎09-09-2017

@Ondi wrote:
Some months ago I lost everything. My job, home etc. When that happened I could not pay any of my credit cards. I owe in total a little over $6000. All of my accounts are now in collection. I just got a really good paying job and I'm back on my feet. I had excellent credit before but what I'm wondering is if it's worth trying to fix my credit when all cards are now in collection or just wait 7 years. It's painful as I worked very hard to build my credit but I'm wondering now that I have collections, even if I tried paying them off it will still show negative on my credit. I don't want to ignore my bills but the chance of having good credit seems small. If I pay everything off, is it possible to have good credit again with paid collections even showing paid on my report?

YES

Talk of BK over $6k when you just got a good paying job is complete nonsense IMO.

Try to negotiate PFDs

If they won't delete, a paid collection is still heaps better than an unpaid one (and you don't want to get sued over any of these debts)

Pay your bills, get some new positive tradelines going, and you'd be surprised how fast you can rebound.

Anonymous · ‎09-09-2017

@Anonymous wrote:
@Ondi wrote:
Some months ago I lost everything. My job, home etc. When that happened I could not pay any of my credit cards. I owe in total a little over $6000. All of my accounts are now in collection. I just got a really good paying job and I'm back on my feet. I had excellent credit before but what I'm wondering is if it's worth trying to fix my credit when all cards are now in collection or just wait 7 years. It's painful as I worked very hard to build my credit but I'm wondering now that I have collections, even if I tried paying them off it will still show negative on my credit. I don't want to ignore my bills but the chance of having good credit seems small. If I pay everything off, is it possible to have good credit again with paid collections even showing paid on my report?
YES

Talk of BK over $6k when you just got a good paying job is complete nonsense IMO.

Try to negotiate PFDs

If they won't delete, a paid collection is still heaps better than an unpaid one (and you don't want to get sued over any of these debts)

Pay your bills, get some new positive tradelines going, and you'd be surprised how fast you can rebound.

Definately this is the advice to take. I was in way worse shape than you. I started paying everything off and getting what I could removed. Took about 2 years to accomplish but Back in the 700's again now and am at a point now where I don't have any worries when it comes to what I need credit wise. There are still many cards I don't qualify for because of the baddies still on my reports. But there are many many more companies that have greeted me with open arms.

wa3more · ‎09-09-2017

i agree, No BK for 6k...

Anonymous · ‎09-09-2017

I don't think BK is a bad thing for the right person. But I think if you are back in a job that pays well enough that you can start paying on some of these debts, then $6k is doable.

I think if you are willing to put together a plan, you can do it. If you want to post details here, folks will help out with suggestions.

I'm sorry that you lost so much. Don't lose hope, though. You can absolutely work through this.

wa3more · ‎09-11-2017

BK is nuke option . It is used when you have judgments/liens/levies against property or wages garnished and you can't live. Some creditors never sue. I got lucky with Chase, they just walked away from a 20k credit line.

BK would cost 1500, maybe 2000 ? That money could be used to settle the 6k. OP is on right track with good job and paying this down and will have decent score in 2 or 3 years.