Where to Begin? Need Advice — UPDATE

[Anonymous]

UPDATE 7/3/21: the largest trade line of over $1,800 has been removed after a dispute reported inaccurate information. So that's a win in my book. Glad to have the biggest one gone, will continue to tackle the others.

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Hello, I am now trying to pay off my collections and repair my credit. I'm moving next year for work and I'd like to not have to stress about my bad credit holding me back from financing a car, a home, or getting approved for an apartment. Listed below is the breakdown of my 2 charge off's and 11 collections accounts. 

I would love any insight on how to handle these. I am living paycheck to paycheck, so I'm trying to do what I can with what little I have. Any advice and insight and tips would be greatly appreciated.

CHARGE OFFS:

Discover: $683
- They’ve agreed to a $8/month for 12 months payment plan to settle the full debt

Kohl’s: $614

- Closed and charged off 7/19/18

COLLECTIONS:

Creditor: Red Stick Emergency Group (medical)

CA: Commonwealth Finance

Balance: $1,882 (DISPUTED AND REMOVED 7/3/21)

Creditor: Capital One

CA: Portfolio Recovery

Balance: $1,384

Creditor: Synchrony Bank

CA: Midland Funding

Balance: $1,185

Creditor: Capital One

CA: Portfolio Recovery

Balance: $1,007

Creditor: Synchrony Bank

CA: Midland Credit Management

Balance: $876

Creditor: Comenity Bank

CA: Midland Credit Management

Balance: $582

Creditor: Loan by Phone

CA: Debt Recovery Solutions

Balance: $430

Creditor: Speedy Cash

CA: Ad Astra Recovery

Balance: $405

Creditor: Local hospital bill

CA: Transfinancial

Balance: $241 (6 MONTH REPAYMENT PLAN NOW IN EFFECT)

Creditor: Progressive Insurance

CA: Caine and Weiner

Balance: $191

Creditor: Red Stick Emergency Group (medical)

CA: Phoenix Financial

Balance: $83 (SETTLED FOR $55, PIF FOR A DELETE ON 7/3/21).

[mja1970]

This is definitely going to be a long road considering the large number of collections you have to deal with, coupled with the fact that you are living paycheck to paycheck and have limited funds to work with.  Take the collections that you feel most comfortable dealing with first and the ones that you know you will be able to afford and work on those ones first.  Only you know what you can afford, so we can't really give you any advice there since we don't know your financial situation.  You are probably going to have to chip away at these a little at a time.   Just a heads up, this is probably going to take more than a year unless you are able to get help from family or friends in paying these off.  Reach out to the collection agencies and ask if they will settle for a lesser amount in exchange for deletion from your reports.  Some of them will even agree to set up a payment plan if you can't afford to pay it all off at once.  If they do agree to settle and delete, make absolutely sure to get everything they agree to in writing, just in case you pay the debt and they end up not deleting it within 30-45 days of satisfying the account.  This is why I suggest, if possible, keeping all communication with collection agenices via email so you will have a paper trail.  Now, not ALL debt collectors will agree to delete and will simply report the account to the credit bureaus as paid in full, but a majority of them should agree to PFD since that is the most sure fire way for them to get paid. 

This is going to be a time to really double down and pinch every single penny.  It's probably going to mean cutting way back on things like eating out/ordering takeout, traveling, shopping, and other leisurely activities that cost money.  You're going to need to make a lot of sacrifices in order to reach the finish line, but it will be well worth it in the end.  As you know, any landlord, mortgage lender, and auto lender are going to be going over your credit reports with a fine-toothed comb, so you want those reports to be as spotless as possible, and you want your DTI and credit utilization to be LOW.

Again, you have a lot to deal with here, so this is going to take a good bit of time and effort.  It's probably going to seem very overwhelming, and it is, but if you give yourself time and stay committed to the cause, it can be done.  Just try to be realistic about how long this is going to take.  It's very likely that it is going to take longer than 12 months to knock these out.  Maybe look into picking up some side gigs to earn a little extra money to help pay some of these off faster.  You didn't get into this situation overnight and you certainly won't get out of it overnight.  Whatever you do, DO NOT take out any loans to pay these off.  That will only hurt you as it will increase your debt and put you at risk of defaulting yet again.   Best of luck.

[Horseshoez]

@Anonymous, I don't know what current constraints you have on your time, but if you can swing it, maybe a "side hustle" like Door Dash or something to earn a few extra bucks.  I would think if you can put in maybe 10 hours per week you could earn enough extra to pay off the whole lot by this time next year, if not well before.

[Anonymous]

Thanks for the advice. I never eat out, in fact I rarely leave the house. I work remotely. I was doing door dash as side money until the transmission blew on my truck. Bills have been cut back as much as they can. I can pay my bills each month, but not a whole lot is left over. I'm going to crunch some numbers and talk to some of the creditors and see what sort of payment plans they sh offer me. I feel like I've gotten a decent start paying off one and setting up payment plans with 2 others so far. So that's definitely a good start.

[FireMedic1]

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@Anonymous wrote:

Hello, I am now trying to pay off my collections and repair my credit. I'm moving next year for work and I'd like to not have to stress about my bad credit holding me back from financing a car, a home, or getting approved for an apartment. Listed below is the breakdown of my 2 charge off's and 11 collections accounts. 

I would love any insight on how to handle these. I am living paycheck to paycheck, so I'm trying to do what I can with what little I have. Any advice and insight and tips would be greatly appreciated.

CHARGE OFFS:

Discover: $683
- They’ve agreed to a $8/month for 12 months payment plan to settle the full debt

Kohl’s: $614

- Closed and charged off 7/19/18

COLLECTIONS:

Creditor: Red Stick Emergency Group (medical)

CA: Commonwealth Finance

Balance: $1,882

Creditor: Capital One

CA: Portfolio Recovery

Balance: $1,384

Creditor: Synchrony Bank

CA: Midland Funding

Balance: $1,185

Creditor: Capital One

CA: Portfolio Recovery

Balance: $1,007

Creditor: Synchrony Bank

CA: Midland Credit Management

Balance: $876

Creditor: Comenity Bank

CA: Midland Credit Management

Balance: $582

Creditor: Loan by Phone

CA: Debt Recovery Solutions

Balance: $430

Creditor: Speedy Cash

CA: Ad Astra Recovery

Balance: $405

Creditor: Local hospital bill

CA: Transfinancial

Balance: $241 (6 MONTH REPAYMENT PLAN NOW IN EFFECT)

Creditor: Progressive Insurance

CA: Caine and Weiner

Balance: $191

Creditor: Red Stick Emergency Group (medical)

CA: Phoenix Financial

Balance: $83 (SETTLED FOR $55, PIF FOR A DELETE THIS MORNING).

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The ones in red will delete once settled or PIF. Call them and see if they can work with you to find a settlement deal. Now for extra $. If you can prove you have the Covid anti-bodies thru a LabCorp or another lab blood test. $10 if you dont have insurance. You can donate your plasma with the antibodies and can make $100 a visit that last an avg 45 mins for $200 a week with a certain plasma centers. Cant name it but its 3 letters. Theres 800 a month for 2 hrs of your time in 2 visits a week. Some places have new donor fees up to or more than $1000 in your first month. Shop around your area. The older the debt. The lower they will go in settling and bring it to an end. Good Luck!

[Anonymous]

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@FireMedic1 wrote:

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@Anonymous wrote:

Hello, I am now trying to pay off my collections and repair my credit. I'm moving next year for work and I'd like to not have to stress about my bad credit holding me back from financing a car, a home, or getting approved for an apartment. Listed below is the breakdown of my 2 charge off's and 11 collections accounts. 

I would love any insight on how to handle these. I am living paycheck to paycheck, so I'm trying to do what I can with what little I have. Any advice and insight and tips would be greatly appreciated.

CHARGE OFFS:

Discover: $683
- They’ve agreed to a $8/month for 12 months payment plan to settle the full debt

Kohl’s: $614

- Closed and charged off 7/19/18

COLLECTIONS:

Creditor: Red Stick Emergency Group (medical)

CA: Commonwealth Finance

Balance: $1,882

Creditor: Capital One

CA: Portfolio Recovery

Balance: $1,384

Creditor: Synchrony Bank

CA: Midland Funding

Balance: $1,185

Creditor: Capital One

CA: Portfolio Recovery

Balance: $1,007

Creditor: Synchrony Bank

CA: Midland Credit Management

Balance: $876

Creditor: Comenity Bank

CA: Midland Credit Management

Balance: $582

Creditor: Loan by Phone

CA: Debt Recovery Solutions

Balance: $430

Creditor: Speedy Cash

CA: Ad Astra Recovery

Balance: $405

Creditor: Local hospital bill

CA: Transfinancial

Balance: $241 (6 MONTH REPAYMENT PLAN NOW IN EFFECT)

Creditor: Progressive Insurance

CA: Caine and Weiner

Balance: $191

Creditor: Red Stick Emergency Group (medical)

CA: Phoenix Financial

Balance: $83 (SETTLED FOR $55, PIF FOR A DELETE THIS MORNING).

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The ones in red will delete once settled or PIF. Call them and see if they can work with you to find a settlement deal. Now for extra $. If you can prove you have the Covid anti-bodies thru a LabCorp or another lab blood test. $10 if you dont have insurance. You can donate your plasma with the antibodies and can make $100 a visit that last an avg 45 mins for $200 a week with a certain plasma centers. Cant name it but its 3 letters. Theres 800 a month for 2 hrs of your time in 2 visits a week. Some places have new donor fees up to or more than $1000 in your first month. Shop around your area. The older the debt. The lower they will go in settling and bring it to an end. Good Luck!

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Fantastic advice, I will look into that, thank you!

[Anonymous]

Update: I disputed the largest collection that was over $1,800. Disputed to have them verify information and disputed as declared federal/national emergency, as we had 4 this year alone per FEMA. The collection was deemed invalid and removed from all 3 bureaus. Super happy with this!

[Nikita2008]

Mostly I can only echo what others have said here. Try to settle and negotiate PFD for what you can. I see a $191 one there, that may be the next one to pick off.

I think this will be a time consuming process with limited funds, and will take more than a year if you are pay check to paycheck.

Door Dash is an option if you fix your car. 

You mention moving,  clean out, have a yard sale. Sell unwanted clutter on eBay, Mercari, Posh......whatever it takes.

If you can get some positive TL's in place.

[CyberChick]

Good news is that you have collections with Midland and Portfolio recovery. Both will delete when paid or settled right away. You don't need to negotiate PFD.  I know some people have done that with success, but I haven't seen it work for me. Most collection agencies won't accept/sign anything. 

[Anonymous]

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@FireMedic1 wrote:

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@Anonymous wrote:

Hello, I am now trying to pay off my collections and repair my credit. I'm moving next year for work and I'd like to not have to stress about my bad credit holding me back from financing a car, a home, or getting approved for an apartment. Listed below is the breakdown of my 2 charge off's and 11 collections accounts. 

I would love any insight on how to handle these. I am living paycheck to paycheck, so I'm trying to do what I can with what little I have. Any advice and insight and tips would be greatly appreciated.

CHARGE OFFS:

Discover: $683
- They’ve agreed to a $8/month for 12 months payment plan to settle the full debt

Kohl’s: $614

- Closed and charged off 7/19/18

COLLECTIONS:

Creditor: Red Stick Emergency Group (medical)

CA: Commonwealth Finance

Balance: $1,882

Creditor: Capital One

CA: Portfolio Recovery

Balance: $1,384

Creditor: Synchrony Bank

CA: Midland Funding

Balance: $1,185

Creditor: Capital One

CA: Portfolio Recovery

Balance: $1,007

Creditor: Synchrony Bank

CA: Midland Credit Management

Balance: $876

Creditor: Comenity Bank

CA: Midland Credit Management

Balance: $582

Creditor: Loan by Phone

CA: Debt Recovery Solutions

Balance: $430

Creditor: Speedy Cash

CA: Ad Astra Recovery

Balance: $405

Creditor: Local hospital bill

CA: Transfinancial

Balance: $241 (6 MONTH REPAYMENT PLAN NOW IN EFFECT)

Creditor: Progressive Insurance

CA: Caine and Weiner

Balance: $191

Creditor: Red Stick Emergency Group (medical)

CA: Phoenix Financial

Balance: $83 (SETTLED FOR $55, PIF FOR A DELETE THIS MORNING).

---

The ones in red will delete once settled or PIF. Call them and see if they can work with you to find a settlement deal. Now for extra $. If you can prove you have the Covid anti-bodies thru a LabCorp or another lab blood test. $10 if you dont have insurance. You can donate your plasma with the antibodies and can make $100 a visit that last an avg 45 mins for $200 a week with a certain plasma centers. Cant name it but its 3 letters. Theres 800 a month for 2 hrs of your time in 2 visits a week. Some places have new donor fees up to or more than $1000 in your first month. Shop around your area. The older the debt. The lower they will go in settling and bring it to an end. Good Luck!

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Just to add, Caine & Weiner will also PFD (pay for delete) and Debt Solutions may as well, you will have to search the forum for others experiences on that one.

I have not hear of Transfinancial, did they also agree to PFD? Getting all CAs to delete is the best thing for your scores you can do, so fingers crossed this one does not hold up your progress!

And that is good info that Phoenix Financial does do PFD. That should be added to the list of CAs that do PFD if it is not already there!