Need guidance on this rebuild journey!!!

[Anonymous]

I got myself in really bad debt after my divorce. this was almost 2.5 years ago. I stopped paying everything because I could no longer afford not even the monthly minimum payments. I couldn't even get approved anywhere for any loan to try and consolidate. I couldn't even refinance my mortgage because my credit score took a hit and there wasn't enough equity to begin with.  

I decided to go on this rebuild journey because I need to get myself out of debt and be able to purchase another home. I want to be able to say im debt free.  

Right now I have 7 collection accounts. One I'm currently being sued for but it will be deleted once the case its closed. I've used this attorney on 3 other collection cases and its all been dismissed and the collections were removed. 

I have another case where the original creditor is with Sterling/Jareds and they are suing me as we speak and my attorney stated most likely I will have to pay them on some sort of plan. Its reporting as a charge off. 

I have 12 charge offs currently reporting as well. I only have 4 credit cards with Chase that are in good standing that I have been paying off. The current balances between all for are $6k. I haven't paid it down in fear of them reducing my credit line or closing the accounts. 

Now that my income has increased and things are better for me I was just approved for a $30k loan through upstart but with a crazy interest rate. I plan to use every dollar to pay off my collections and charge offs in hopes to refinance my mortgage and and payoff the upstart loan and lower my mortgage payments. my debt is definitely a lot more than $30k but I have been saving all the settlement offers I received in the mail and basically composed an excel sheet with the payoff amounts. I do plan on settling all the debt. 

I plan on paying off the credit cards that are in good standing first and then the next step is  dealing with the collections. I just need guidance on how to deal with all these charge offs that are about 2 yrs old. Theres 12 of them. 😕

My current Fico scores are : EQ- 587 ; TU-603; EX-591

[gdale6]

Well in dealing with the COs you want to start with the ones reporting monthly, take them out first then move on to the ones that are not updating. Also you want to prioritize higher interest rate cards over lower ones in the two tiers (Updating monthly or not updating monthly). If there is a collector involved with the OCs CO then you would also want to ask the OC to recall their collector since you are going to deal directly with them.

[Anonymous]

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@gdale6 wrote:

Well in dealing with the COs you want to start with the ones reporting monthly, take them out first then move on to the ones that are not updating. Also you want to prioritize higher interest rate cards over lower ones in the two tiers (Updating monthly or not updating monthly). If there is a collector involved with the OCs CO then you would also want to ask the OC to recall their collector since you are going to deal directly with them.

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Thank 
Thank you for replying! 

Just so I understand correctly, for every CO that is dealing with a collector I want to ask them to recall their collector?

What is the benefit of doing that? I'm interested to know. Thank you so much for your input. There's a lot to learn  🙂

[EAJuggalo]

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@Anonymous wrote:

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@gdale6 wrote:

Well in dealing with the COs you want to start with the ones reporting monthly, take them out first then move on to the ones that are not updating. Also you want to prioritize higher interest rate cards over lower ones in the two tiers (Updating monthly or not updating monthly). If there is a collector involved with the OCs CO then you would also want to ask the OC to recall their collector since you are going to deal directly with them.

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Thank 
Thank you for replying! 

Just so I understand correctly, for every CO that is dealing with a collector I want to ask them to recall their collector?

What is the benefit of doing that? I'm interested to know. Thank you so much for your input. There's a lot to learn  🙂

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If you pay the collector they can leave their collection on your report as long as it's shown as paid.  When the OC recalls the debt from the CA, the CA is required to remove their collection since they no longer have the authority to collect on it.  You're going to take a hit from the CO, no need to take another from the CA.