@Red1Blue wrote:
@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.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.
No one can tell you the exact amount of points you're losing from each. But your highest priority should be getting rid of the chargeoffs if that's possible. Settling your debt doesn't get rid of the chargeoffs. Sometimes it creates a new negative.
