Util vs. 90 Day lates

[Red1Blue]

The more I am learing there are two things are important ( All my baddies are COs ). What is your suggestion to get a small boost in my scores. I am planning on paying of all accounts, in the process I am looking for a small bost.

The same Dollar amout will clear

1. I have 2 COs that are reporting 90 Days with Util ( CO amount) around $45K

2. I have 6-7 COs that are reporting 90 days with Util ( CO Amount ) around $18K

Which would get more bang. Getting 6-7 account stop reporting 90 day lates but util drop only by 18K or pay off 2 accounts and get a drop in Util by $45k. Which is the most recommended.

[Anonymous]

If it were I, I would pay off the six or seven.

Here’s the reason: everyone of those COs appear to be a maxed out card. Would you rather get rid of six or seven maxed out cards or two?

[Revelate]

Agreed with Birdman but why are we talking different payment values?

Either you have 18K or 45K to throw at the debt and I'm not understanding why that's different in the two scenarios?

[OmarGB9]

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@Revelate wrote:

Agreed with Birdman but why are we talking different payment values?

Either you have 18K or 45K to throw at the debt and I'm not understanding why that's different in the two scenarios?

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OP has mentioned to me and maybe on other threads that the $45k would be settled for around $16k, hence the amount being almost the same as the other $18k option. Thus his question about whether dollar amount wise, which would be more beneficial. Concord, I agree, the more accounts with zero balances showing, the better. Especially if it's gonna cost you around the same amount of money. Even though the overall debt may not go down as much, it'll be significantly more cards at zero.

[Revelate]

Since the credit file can’t get that much worse from here I would save the 30K frankly.

Finances > FICO. I hadn’t read that other thread thanks for the heads up.

[Anonymous]

Agreed with Rev - if I could clear $18k of debt for roughly face value, or get rid of $45k in debt for $18k, I wouldn’t think twice. As it sounds like this is definitely an either-or scenario and therefore that whichever is paid off lump-sum, the other will have to be paid over time, I’d try and get rid of the most dollar-value debt possible. Since settlement offers aren’t guaranteed to be on the table forever, wipe out the two big ones for a big discount while it’s offered. Much better than erasing the smaller ones and trying to pay off 45 grand in payments. Scores shouldn’t even be the primary concern at this point.

[GApeachy]

What are the dofd dates for each one?  List each one and dollar amt.  Indicate payoff/settlement offer

[Red1Blue]

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@Anonymous wrote:
Agreed with Rev - if I could clear $18k of debt for roughly face value, or get rid of $45k in debt for $18k, I wouldn’t think twice. As it sounds like this is definitely an either-or scenario and therefore that whichever is paid off lump-sum, the other will have to be paid over time, I’d try and get rid of the most dollar-value debt possible. Since settlement offers aren’t guaranteed to be on the table forever, wipe out the two big ones for a big discount while it’s offered. Much better than erasing the smaller ones and trying to pay off 45 grand in payments. Scores shouldn’t even be the primary concern at this point.

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What I am confused is the effect of Util vs. 90 day lates. All this time every one is saying bring the util down. I did not realize that 90 day lates also have the effect on the scores and they can hold the scores back. I am trying to take a two pronged approach and try to bring down the Util and also pay off the COs that are reporting 90day lates. I am planning on paying off / settling all the accounts in the next 6 months and I should have $0 Util on CO/Lates and 0 Accounts posting 90 day CO/Lates. 

I have 12 accounts showing as COs and posting the 90 day lates.

Total amount of the debit is $120K.

I can pay off 3 accounts with Util of $66K for $13k.  Brings down Util by $66k to $0 but only 3 accounts stop showing 90 day lates. Remaining 9 accounts showing Util $55K that I can setttle for $25k or less.  But they are posting 90 day lates also.

I have 4 secured cards and student loan and a new installment loan posting the ontime payment for last 6 months. 

At this time I am not sure if the Util is holding back my scores or 90 Day lates holding back my lates. That is what I am trying to figure out and how best to prioritize the cleanup. Which ever way I go, I am planning on wiping out all my CO Debt and Collections  in the next 6 months. After that I'll let my scores take its own time to rebound. I guess it really does not matter. I can take the snowball approach or pay off the large amounts and bring down the util fast.

[GApeachy]

Idk recall if you listed dates of when all these lates happened, apologize in advance if you did.

What is your states sol and are any of them close to that?  Dofd of these accts. would help.  Did all the accts. become 90 days late around the same time?  Or over a several year period?

*  That might help in picking and choosing the ones to paydown first, particularly if some of those 90 days would age off naturally sooner than others.  

[Red1Blue]

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@GApeachy wrote:

Idk recall if you listed dates of when all these lates happened, apologize in advance if you did.

What is your states sol and are any of them close to that?  Dofd of these accts. would help.  Did all the accts. become 90 days late around the same time?  Or over a several year period?

*  That might help in picking and choosing the ones to paydown first, particularly if some of those 90 days would age off naturally sooner than others.  

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Yes. All accounts became DoFD / CO / 90 Day lates around the same time period. May be few months apart but many in 2018. Some may be early 2019. I have to check the dates for each account. Most of them in 2018 and some 2019.

SOL in my state for unsecured credit card debt is 3 years. Since these happend in 2018 / 2019 I am not sure if they are any out of SOL or now. Some may be barely out of SOL. I have to check each account.

Right now 12 accounts reporting 90 day lates. I am going to clear them all in the next 6 months. Few accounts each month.