rebuilding after BK and getting back into a mess

[Superdad88]

Discharged in 2020.  Took a couple sub prime cards, indigo, primier and a self lender loan and about 4 collections. I maxed out the two cards and lost my job and ended up in the hospital for 2 months.  I decided to check my report.  Of course all 3 where closed and showing balances.  With in the past week I have paid off the self lender and indigo.  Primier will be paid off next week.  I figured I would pay these off first so they will stop reporting.  Next month I am going to knock out the 4 collections, about 3K.  Am I back on the right track?  After everything is paid I will have all the lates from the cards but i won't have anything positive.  Any recommedations on how to progress? How long does it take for the lates to have less of an impact?

[FireMedic1]

Hope your doing better now. Sorry about the incident. Were the accounts charged off? If so. There's the worst part. Lates dont do as much harm as a CO status. Its great your paying down what was left over after your recovery. Who are the CA's? Some do PFD. Wont help scores much with CO's reporting. But at least once all the CO's are settled. No more monthly updating and age will do its thing. Theres always Cap1 who is forgiving. Yes it will be a bucket card. But its a revolver to get things going again.

[Superdad88]

The only card that showed CO was premier.

Collections are

credit collection service 785.00 comcast

2 are first credit services total 545.00 gym memberships

national acct systems 120.00 storage company

[mfinsmi1]

@Superdad88 dang a collection for 100 dollars - hate to see when companies just dont eat the bad debt for such tiny amounts lol ... good luck on ur future rebuild

[Remedios]

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@mfinsmi1 wrote:

@Superdad88 dang a collection for 100 dollars - hate to see when companies just dont eat the bad debt for such tiny amounts lol ... good luck on ur future rebuild

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Do you walk around handing $100 bills because you love people and you just mentally put it in "bad bebt" category and move on?  

Why would anybody "eat" fee for service they provided?

The day you can walk out of grocery or department store with stuff and instead of paying, letting them know they can "just bad debt it" is the day collector's are going to stop collecting 

[Remedios]

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@Superdad88 wrote:

Discharged in 2020.  Took a couple sub prime cards, indigo, primier and a self lender loan and about 4 collections. I maxed out the two cards and lost my job and ended up in the hospital for 2 months.  I decided to check my report.  Of course all 3 where closed and showing balances.  With in the past week I have paid off the self lender and indigo.  Primier will be paid off next week.  I figured I would pay these off first so they will stop reporting.  Next month I am going to knock out the 4 collections, about 3K.  Am I back on the right track?  After everything is paid I will have all the lates from the cards but i won't have anything positive.  Any recommedations on how to progress? How long does it take for the lates to have less of an impact?

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You're back to where you were prior to BK.

BK offers fresh start, and unless you get all collections, all lates, anything negative to poof, it's a pretty big mess, especially that close to BK. 

In a nutshell, you're back on payment track, but not necessarily on rebuilding track since you will have to go back to square one and hope someone approves you for something. 

It's not the end of the world, but not a good start either. Let the dust settle, and once your finances allow for it, get a couple of secured cards then do nothing else. Forget about credit mix, loans you dont need, needing X number of cards to make Fico happy, just grab decent cards and garden. 

You now have BK, CO following BK and triple lates, it's not a good look, hence the need to put some time between current events and elaborate rebuild planning. 

It will happen, you'll just need more patience than before. 

Also, very much after the fact, but autopay for minimum payment is your best friend, you cannot afford any more of this stuff.  

Before you do any of that, you need to look at your finances and where your money is going.  Don't put money into secured cards till you have at least some saved. Avoid cards with AFs and fees (hence recommendation to wait so you'd have a chance at good secured cards), you have to stop overextending yourself financially. 

[Superdad88]

Things are looking better. I managed to pay off all the collections and one of the secured card I paid off agreed to delete all the past dues which gave me 49 point increase. 3 of the 5 collections have removed the trade lines. The other two  just updated paid. I only have one CO CC with a balance of 900.00 that I will pay off next week and it will stop reporting. 

I did manage to get a capital one card but haven't tried for anything else until all the rest of the dust clears and I see where I sit. 

[FireMedic1]

Great to see you managed to get back on track. Each payday pay yourself 10% of take home pay into savings. Build it up to 6 months of bills and dont touch it. Next time you'll have a back up. No lates. Use the cards you have now as a debit card. Grab the rewards. Pay it. Dont let swipe fever come into your life again by maxing it out. If you cant pay it. Dont charge it. Save for what you want. Use your card. Get Rewards. Pay it. Its a numbers game.