cancel
Showing results for 
Search instead for 
Did you mean: 

Suggestions Welcomed...My Rebuild

Highlighted
Contributor

Suggestions Welcomed...My Rebuild

I've been reading for a few weeks, so I want to say thank all of you for the valuable information. 

 

In November of 2016, my hubby and I found ourselves overwhelmed with debt. I was ill, for most of the year, and it made it difficult to keep up with lots of payments. We filed Chapter 13, not willingly, but our income was too much for Chapter 7. The Plan for us was horrible, and by the time we made our payments to the trustee, we barely had enough left over for groceries. Long story short, our Chapter 13 was dismissed. When I returned to work full-time, we were able to pay off some of the debts we included. We decided the best course of action was to pay off things in his name, seeing the mortgage is in his name. We felt horrible all this happened to us, we were always the people with good to excellent credit. We thought were alone in this fight. 

 

Since then, we have been trying to rebuild on our own, but that hasn't gotten us far. The great thing for us is I found this community. My husband's scores are bouncing back, all of his scores are 630+, but we aren't having the same success with mine, oh and I know why. 

 

Here's where I need advice. Would you all suggest I pay all my cards down to 25% UTIL, then work on PFD for the collections?

 

Here's what I have:

EQ 540

EX 589

TU 540

 

Car loan: Exeter Finance 5/18, 18,000 20%apr

 

WF Secured Visa 5/18  CL 500 Current UTIL 81%

Indigo MC 8/18 CL 300 Current UTIL 62%

Cap1 MC 5/19 CL 300 Current UTIL 27%

Credit 1 Visa 6/19 CL 1000 Current UTIL 47.5%

USAA Secured Visa 5/17 CL 1250 Current UTIL 32% AA

 

8 Collections

 

We hope to purchase another home in a year, trade out of the awful car loan I'm currently in (with a better apr). We just want our overall scores somewhat close to what they were prior to 2016.

 

TIA

Starting score 6/19 TR 567 Ex 589 EQ 540
7/19 TR 620 EX 595 EQ 577
8/19 TR 643 EQ 614 EX 612
4/20 TR 649 EX 663 WQ 628
Message 1 of 8
7 REPLIES 7
Highlighted
Established Contributor

Re: Suggestions Welcomed...My Rebuild

Welcome! Keep reading these threads as much as possible.

 

The 8 collections are more than likely what is holding your scores back. Can you list them out by $ amount, who the OC was, who the CA is, & when the DoFD is for each one? We might be able to offer you advice on how to tackle these.

 

I will say what I tell everyone- are you tracking all your spending on a written budget? Since I started my rebuild 12 mo ago I track every penny- all my monthly obligations, credit card payments, any other debt, etc. Seeing your spending on paper lets you see where your money is going every paycheck & can also help you identify spending habits & abilities to create cash flow by eliminating unneeded spending. I get paid twice a month, so I break my monthly obligations in half, so I see exactly how much I have left over for cash flow & paying off debt after everything else is accounted for.

Here is an example of what I use:

Budget Template pic.PNG







Message 2 of 8
Highlighted
Contributor

Re: Suggestions Welcomed...My Rebuild

Navy Federal, not with CA, bal owed $12,000

Midland $386, OC Synchrony DoFD 11/2015

Midland $405 OC Synchrony DoFD 11/2015

Midland $770 OC Synchrony DoFD1/2016

Midland $448 OC Synchrony DoFD 12/2015

Portfolio Recovery $1803 OC Capitol One DoFD 12/2015

Portfolio Recovery $1704 OC Barclays DoFD 5/2015

Portfolio Recovery $503 OC Synchrony DoFD 11/2015


@ScooterMcDoodlebutt wrote:

Welcome! Keep reading these threads as much as possible.

 

The 8 collections are more than likely what is holding your scores back. Can you list them out by $ amount, who the OC was, who the CA is, & when the DoFD is for each one? We might be able to offer you advice on how to tackle these.

 

I will say what I tell everyone- are you tracking all your spending on a written budget? Since I started my rebuild 12 mo ago I track every penny- all my monthly obligations, credit card payments, any other debt, etc. Seeing your spending on paper lets you see where your money is going every paycheck & can also help you identify spending habits & abilities to create cash flow by eliminating unneeded spending. I get paid twice a month, so I break my monthly obligations in half, so I see exactly how much I have left over for cash flow & paying off debt after everything else is accounted for.

Here is an example of what I use:

Budget Template pic.PNG


 

Starting score 6/19 TR 567 Ex 589 EQ 540
7/19 TR 620 EX 595 EQ 577
8/19 TR 643 EQ 614 EX 612
4/20 TR 649 EX 663 WQ 628
Message 3 of 8
Highlighted
Super Contributor

Re: Suggestions Welcomed...My Rebuild

Get those cards util down will help alot. List the collections out like Scooter stated. If any are from Portfolio or Midland they will delete if paid or settled for less. The cards really arent alot of money to get them paid down. (Not knowing income) But its doable.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 4 of 8
Highlighted
Contributor

Re: Suggestions Welcomed...My Rebuild


@FireMedic1 wrote:

Get those cards util down will help alot. List the collections out like Scooter stated. If any are from Portfolio or Midland they will delete if paid or settled for less. The cards really arent alot of money to get them paid down. (Not knowing income) But its doable

 

Thanks Scooter and FireMedic1. I'm making the payments now as we speak. 


Starting score 6/19 TR 567 Ex 589 EQ 540
7/19 TR 620 EX 595 EQ 577
8/19 TR 643 EQ 614 EX 612
4/20 TR 649 EX 663 WQ 628
Message 5 of 8
Highlighted
Valued Contributor

Re: Suggestions Welcomed...My Rebuild

welcome Smiley Happy

To start, your open CC are not helping your score! You are over utilizing them and that counts about 1/3 of your score! pay them off and you should be in the 600s. Elemenate paying very high interst rate cards and use the funds for collections. The only good card you got is Cap1. Soon you'll be canceling reset of them. I did 😂

You got auto loan reporting monthly so all you need is one card to report monthly. NO need to show balance.

 

Your collections are not that much for them to spend time with you. So keep calling them instead and try to talk to some manger... till they reduce it as much as you want 😉

And for the 12K see howmuch they can reduce or if they can split the balance in few payments!

 

Most of your collections would be removed soon after they are settled, you can also negotiate a removal after you agreed on the amount.

 

Good luck 😃







       
Message 6 of 8
Highlighted
Community Leader
Senior Contributor

Re: Suggestions Welcomed...My Rebuild

OP, other than the payoff of the Navy debt due to its size, this may be one of the easiest rebuilds I’ve ever seen. Except for Navy, all of your collections are with PRA and Midland, who have stated policies that they delete upon payment, whether in full or in part. PRA will do it within a billing cycle of payoff, and Midland will within 30-45 days as long as the debt is at least two years old.

With several debts with each CA, I’d ask for a lump settlement from them. For example, say your total to Midland is $1200 - ask if they’ll satisfy all debts for a lump payment of $750. Do this with PRA as well.

You can negotiate but if they want payment in full, do it. You’ll be able to virtually wipe the slate. Getting your usage down first is good, as it’ll allow the collections to get a little more time since DoFD, which brings you closer to the deletion window offered by Midland. You won’t skyrocket in scores after PRA and Midland are paid off because the Navy debt will still be there, but you can wipe out everything else and then hammer on Navy.

You’re actually positioned well for a recovery, just get the usage down on those cards and keep it down to give yourself the best chances.


Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | IT Cash | IT Chrome | GHS Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Firestone | Wayfair | Overstock | Kohl’s

5/24, 1/24, 76445/24, who cares #HappyWithAmex





Entering the garden 5/27/2019, staying until 2020
(Lol so much for that grand plan...)
Message 7 of 8
Highlighted
Contributor

Re: Suggestions Welcomed...My Rebuild

you guys are amazing, and I really appreciate your input. 

Starting score 6/19 TR 567 Ex 589 EQ 540
7/19 TR 620 EX 595 EQ 577
8/19 TR 643 EQ 614 EX 612
4/20 TR 649 EX 663 WQ 628
Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.