Quote:
Originally Posted by Mobuis
I am already past the 30 days on alot of them, if I end paying the original holder of the debt will that help too? As for the credit rating I am really not worried about the score as much as I am wanting to pay the debt, the way I look at it is if I pay the debt first the credit score will fix itself. I just need an option as to how to get the banks to work with me when I can't even offer them any money. Right me and my wife are looking at another year before we can even make a dent in our debt.
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Are any charged off yet? Charge off happens at 180 days from date of delinquency. You can still avoid that. Sometime you can pay the original creditor and that will remove the collection, sometimes the OC will refuse and make you deal with the CA. Usually depends if its an inhouse CA or outside CA. Inhouse CA are easier to deal with. IF they were sold to a CA, you can offer them them a deal like at a third of the balance to settle in full. Selling of debt cant happen until its charged off so if it hasnt reached that point yet then you options a few.
You can offer to close the account and make payments on the remaining debt at a reduced rate or use a credit counseling agency, though most are scams... Try for a consolidation loan, citifinancial offers personal loans that are easy to get but there rate is high. Got me out of a jam though.
Can I ask how much CC debt you have? I took out a 10k loan that wiped out 7k of debt I had...saved me $140 a month and now I am paying $250 a month for 5 years...sucks but it worked for my situation.
Home equity? That would be your best bet if the current housing market hasnt cleaned you out of equity. IF you are planning on Refi'ing, you must have equity...but if you already have lates...that might be tough.
Credit score wont fix itself...well after 7 years it will... Even if you pay the debt, the lates are still reported and if its a charge off, it doesnt age like a regular 30 day late will...