Rebuilding after very recent fall

[Anonymous]

So my husband and I recently had a bad financial period during the summer. We both were unemployed. We are both now employed, and want to start rebuilding. Our scores dipped- HARD. I am embarassed, and feel really REALLY stupid. I need a little hope, and a little help/guidance. 

Here is the breakdown on my end only: 

EXPERIAN: 540

Credit Cards: 

BANK OF AMERICA
$509
100% usage
Exceptional payment history

CAPITAL ONE BANK USA N
$1,810
100% usage
2 late payments

CAPITAL ONE BANK USA N
$2,329
100% usage
2 late payments

COMENITY BANK/LNBRYANT
$1,561
100% usage
6 late payments

COMENITYCB/ULTA
$419
83% usage
Exceptional payment history

CREDIT ONE BANK NA
$1,062
100% usage
Exceptional payment history

FIRST PREMIER BANK
$774
100% usage
2 late payments

MERRICK BANK CORP
$1,453
100% usage
2 late payments

SYNCB/WALMART
$578
100% usage
1 late payment

Closed Credit Cards: 

KAY JEWELERS
$0
Paid, closed
Exceptional payment history

KAY JEWELERS/GENESIS
$1,353
Paid, closed

3 late payments

Auto Loan: 

CARMAX AUTO FINANCE
$11,750
28% paid off
Exceptional payment history

Personal Loans: 

NET CREDIT
$4,705
0% paid off
2 late payments

RISE/ECS
$5,122
0% paid off
2 late payments

TRANSUNION: 482

Credit Cards: 

BANK OF AMERICA
$509
100% usage
Exceptional payment history

CAPITAL ONE BANK USA N
$1,810
100% usage

Exceptional payment history

CAPITAL ONE BANK USA N
$2,329
100% usage
Exceptional payment history

CAPITAL ONE (AUTHORIZED USER)
$566
100% usage
Exceptional payment history

CAPITAL ONE (AUTHORIZED USER)
$923
100% usage
Exceptional payment history

COMENITY BANK/LNBRYANT
$1,561
100% usage
2 late payments

COMENITYCB/ULTA
$419
83% usage
Exceptional payment history

CREDIT ONE BANK NA
$1,062
100% usage
Exceptional payment history

FIRST PREMIER BANK
$774
100% usage
1 late payments

MERRICK BANK CORP
$1,453
100% usage
1 late payments

SYNCB/WALMART
$578
100% usage
1 late payment

Closed Credit Cards: 

KAY JEWELERS/GENESIS
$1,353
Paid, closed

2 late payments

Auto Loan: 

CARMAX AUTO FINANCE
$11,750
28% paid off
Exceptional payment history

EQUIFAX: 459

Credit Cards

BANK OF AMERICA
$509
100% usage
Exceptional payment history

CAPITAL ONE BANK USA N
$1,810
100% usage

1 late payment

CAPITAL ONE BANK USA N
$2,329
100% usage
1 late payment

CAPITAL ONE (AUTHORIZED USER)
$566
100% usage
Exceptional payment history

CAPITAL ONE (AUTHORIZED USER)
$923
1 late payment

COMENITY BANK/LNBRYANT
$1,561
100% usage
2 late payments

COMENITYCB/ULTA
$419
83% usage
Exceptional payment history

CREDIT ONE BANK NA
$1,062
100% usage
Exceptional payment history

FIRST PREMIER BANK
$774
100% usage
1 late payments

MERRICK BANK CORP
$1,453
100% usage
1 late payments

SYNCB/WALMART
$578
100% usage
1 late payment

Closed Credit Cards: 

KAY JEWELERS
$0
Paid, closed
Exceptional payment history

KAY JEWELERS/GENESIS
$1,353
Paid, closed

2 late payments

Auto Loan: 

CARMAX AUTO FINANCE
$11,750
28% paid off
Exceptional payment history

We are finally employed and able to hold our head above water. I just need to figure out which direction to come at this mess from, you know?

Not include is the massive amount of student debt we have combined. That is in forebearance. 

Guidance please?

[RSX]

don't be embarrassed.  You are working on it now

i would say setup Auto Pay for every account. At the minimum amount

Start making extra payments on each 100% account.  Get them all under 87%

next start making min payment on all accounts. And add all extra to the highest interest % account

Set up a tracking doc in Excel. Take a snapshot of your current situation. Then update it every month. When you see the progresss, it will help you continue on

you can do this. 

[FireMedic1]

Attack every account to get them below 89% which is considered maxed out in the FICO world. Then pay each one starting with the highest interest rate with more than the others. Once one is paid. Use the money that paid one off and apply it to the next. And so on. It will lessen the chance of AA having basically all maxed out cards. Take on a PT job to pay it to go away faster. Its great you want to tackle this. Good Luck!

[Anonymous]

I noticed your signature. I do not take it as bragging. You mention it is to show what can be accomplished, I am wondering if your hit a low like this prior and rebuilt from there? How long did it take you? Is my situation recoverable?

[Anonymous]

Not to put words on @FireMedic1’s screen, but yes, he did rebuild from a bankruptcy and has gotten to this point in only a few years.

You situation is definitely recoverable with dedication and perseverance. If you need to cut some luxuries, do it - it’s short term discomfort and will leave you sitting in a much better position. I don’t pretend to know the particulars of your finances and I don’t want to assume, but if your current income allows you to snowball as FM1 described, great. If not, making some cuts to lifestyle, doing OT at work, or getting a side hustle can make a huge difference in your situation. Another member here, @bdub1234, is selling blood plasma twice a week in addition to doing all sorts of side jobs to pay off over a hundred grand in debts. Last I saw, he had paid $40k since April.

Yes, it definitely is doable.

[FireMedic1]

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@Anonymous wrote:

I noticed your signature. I do not take it as bragging. You mention it is to show what can be accomplished, I am wondering if your hit a low like this prior and rebuilt from there? How long did it take you? Is my situation recoverable?

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Anyone who files BK has to start of the bottom of the barrell. Most of my debt in BK was back taxes. A tax lien which is the worst. (before the new law that doesnt report liens) Started in the 540-560 range.  A few collections. And an old judgement for Wells Fargo. I didnt have any cards in BK. But the few that remained on my reports had no lates. But they're all gone now past the 10 yr mark. Anyone can rebuild. If you can pay all this down and no more lates on the way. You could gain an easy 40-60 pts. (ball park range) So yes it can be done. Took around 3 and a half yrs out to hit 740's of 4 yrs since BK DC. I'm topped out now until the BK falls off in 6 yrs.

[Anonymous]

Thank you for the confidence boost, all of you. I really needed it after looking it all over today. 

[FireMedic1]

You very well could pass me up in time because you dont have a BK on your reports. Time to get to work and pay all this mess off and wave as you pass me. LOL!!!!!!!!!!!

[StillKicking]

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@Anonymous wrote:

Thank you for the confidence boost, all of you. I really needed it after looking it all over today. 

---

1. It can certainly feel overwhelming, especially in the beginning but with hard work you can tackle this.

2. FireMedic1 is being modest, that's a very impressive rebuild after BK7. I certainly wish I had found this place sooner, I'd be that much further along.

3. Stick around here and read, then read some more. There is a massive amount of information here and lots of people genuinely willing and able to help.

Good luck and welcome to the forums!

[Anonymous]

RSX has laid out a very good strategy, but I wanted to chime in with this: look carefully at how high the interest rates are on those loans. They might need to be top priority after making minimum payments on everything. They might be EXTREMELY HIGH.