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  #1  
Old 09-29-2009, 07:38 PM
Slevin Slevin is offline
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Default Financial Hardship for years, Trying to Recover (Long)

Ok, I’ll try and cover as much detail in as short of a post as possible, haha yeah right. First off, I have my credit report and can post my FICO scores and any information, at this point I’m trying to get some good advice and a plan of action.

History: I’ve suffered from seriously horrible credit for almost 7 years, with that said, I have a number of accounts, probably about 10 or more that have been sent to collections or charged off. A car loan ($15,000 charged off), a consolidation loan ($10,000 charged-off), $2500 credit card, $1500 credit card, $600 credit card, $2800 credit card, and some various others. This all happened in the 2001/2002/2003 time frame. So what I’m faced with is a charge-off from the issuing institution AND a collections from a collection company. This double reporting is negatively impacting my credit. I’m almost to the 7 year mark on a number of these, Nov. 2010 being the latest that some will be required to be removed from my credit. This is a very general overview, I can provide more details if anyone is available to give me some advice.

So, with that said, what I’m trying to do is repair my credit. I’ve tried for years, many different ways, all of which have utterly failed, or my money has been stolen. I’m beginning to realize that this is something that I may be better off trying to do myself if I had a good plan and some advice from some people that know about this.

My main concern is this: I will be getting about an $11,000 disbursement from my 401K in about a week. I was going to use this to negotiate with the collection companies to try and pay the accounts off, but after doing some reading I think this won’t help me as much as I think it will because they will more than likely report the account as Settled, showing that I am not able to pay back the debt, in so many words. With the institutions that are reporting to my credit, I basically have to wait another year to get them off my credit when they reach the 7-year mark. So if I were to pay off some of the accounts, am I correct to believe that I will still be suffering from a Very Weak credit score?

The other possibility I was thinking of was getting a secured credit card with some of my 401K money and keeping that in good standings. Believe me; I’ve learned over these past 7 years how to be responsible with my money. I live off of my income, not credit. I make $107,000 a year and my credit has basically killed me. I don’t have much extra money because the loans I have for instance my vehicle loan, is at like an 18% interest rate.

My current scores are as follows: Equifax 479, Experian 538, and TransUnion 523. As you can see, it’s a bad situation. Any help, advice, or tips would be greatly appreciated. I’ve got any additional information you might need, so just let me know if anyone wants some more information to possibly help me get out of this rut. Thanks.

Slevin

Last edited by Slevin; 09-29-2009 at 08:20 PM.
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  #2  
Old 09-29-2009, 11:30 PM
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sapphirecapital sapphirecapital is offline
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Default Re: Financial Hardship for years, Trying to Recover (Long)

First remember that any penny they waive when you settle outstanding accounts are reported to the IRS as income, with your income the tax rate needs to be looked at. You need a new Tax ID, best would be an S-Corporation with a tax id, owned by a friend or family member, open an account and fund it with the money you want to use to settle, if you buy the accounts at a discount it is tax free.
Rebuilding your credit will need new open lines of credit reported to the credit bureaus (companies like First Platinum Continental etc do this for a fee, their fees are the problem), you may be best of by building corporate credit and then rebuild yours from there.
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Old 09-30-2009, 09:23 AM
Slevin Slevin is offline
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Default Re: Financial Hardship for years, Trying to Recover (Long)

Quote:
Originally Posted by sapphirecapital View Post
First remember that any penny they waive when you settle outstanding accounts are reported to the IRS as income, with your income the tax rate needs to be looked at. You need a new Tax ID, best would be an S-Corporation with a tax id, owned by a friend or family member, open an account and fund it with the money you want to use to settle, if you buy the accounts at a discount it is tax free.
Rebuilding your credit will need new open lines of credit reported to the credit bureaus (companies like First Platinum Continental etc do this for a fee, their fees are the problem), you may be best of by building corporate credit and then rebuild yours from there.
I'm not quite sure I understand what you're saying. I don't have any family or friends with any businesses. I'm a gov't contractor, which provides my pirmary source of income. I've opened a First Preimere CC just to have another open line, I paid the fees that they have, about $200 ish in total. I'm not sure if I should try and knock out the small debts I have, then move onto the larger 2 accounts, or vice versa. I can put up a list of exactly the debt types and amounts if that will help with anyone giveing me a good plan of attack. Thanks and I appreciate any help.

-Slevin
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Old 09-30-2009, 11:17 AM
Slevin Slevin is offline
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Default Re: Financial Hardship for years, Trying to Recover (Long)

Here's some detailed information, if you can't tell, I'm really anxious to start working on this and get a plan of attack.

Listed as Collections on Credit Report
HolcoRecv, Collection Act., $608.00
DISCOVER, $3316.00
Check-Into-Cash, Paid, account was a collection, $0.00
MWH, Paid, account was a collection, $0.00
AFNI/Nextel, Collection Act., $733.00
Columbia Gas, Seriously Delinquent, $85.00
Nat. Credit Adjusters, Collection Agency, pay $75 monthly to DISCOVER balance, $3316.00
Navy FCU, Auto Loan, $15,652.00
Prime Care, Collection Act., $121.00
Hollywood Video, Seriously Delinquent, $203.00
Adelphia, Seriously Delinquent, $713.00

Listed under the Acount Info on Credit Report
ACC Consumer Finance, Auto, Charge-off, $2093.00
Chase, Auto-Paid as agreed, current
CTI Bank/DFS, Charge-off, $2407.00
DISCOVER, Charge-off, $2800.00
HSBC (Credit Card), Paid as agreed, current
Navy FCU, Charge-off, $0.00
Navy FCU, Acount paid as agreed, PAID (Closed by consumer), $22,500.00
Navy FCU, Charge-off, $11,088.00
Navy FCU, Credit Card, PAID (Closed)
Navy FCU, (Credit Card) Charge-off, $2906.00
Navy FCU, (Credit Card) Charge-off, $632.00
Navy FCU, Auto Charge-off, $15,988.00
Sallie Mae, Student Loan (Deferred), Current
USAA, (Credit Card) Charge-off, $2101.00


As you can see there is some double reporting from institution as well as collection account. As stated before, I'm nearing my 7-year SOL for some of the accounts. There are a number smaller accounts that can be paid off easily. Also, none of these accounts in collections are being charged interest, they've been the exact same balances for years. Thanks.

-Slevin
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  #5  
Old 09-30-2009, 01:45 PM
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sapphirecapital sapphirecapital is offline
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Default Re: Financial Hardship for years, Trying to Recover (Long)

email me at legal@sapphirecapitalcentral.com, these private details are not for a forum
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Old 08-29-2011, 11:30 PM
debt.advisor debt.advisor is offline
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Default Re: Financial Hardship for years, Trying to Recover (Long)

This isnít the sort of headline you would want to see if you were one of the energy companies who have put their prices up at a time when everyone is feeling the financial hardship of trying to recover from the disastrous state the economy finds itself trying to leave behind.
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  #7  
Old 08-31-2011, 10:04 AM
expert.debt expert.debt is offline
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Cool Re: Financial Hardship for years, Trying to Recover (Long)

Lenders think that mortgages can be pursued for 12 years under the Limitations Act. Most other debts can only be pursued for 6 years. The time period starts running from the last time the lender contacted you and you agreed that you owed the money ("acknowledged" the debt ) or you made a payment to the lender (or someone who owned the house jointly with you made a payment).
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Old 12-12-2011, 11:16 AM
littleroc littleroc is offline
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Default Re: Financial Hardship for years, Trying to Recover (Long)

Quote:
Originally Posted by Slevin View Post
The other possibility I was thinking of was getting a secured credit card with some of my 401K money and keeping that in good standings. Believe me; Iíve learned over these past 7 years how to be responsible with my money. I live off of my income, not credit. I make $107,000 a year and my credit has basically killed me. I donít have much extra money because the loans I have for instance my vehicle loan, is at like an 18% interest rate.


Slevin
My advice for you is to quit worrying about your credit score I can tell you how to fix that after you work at eliminating your debt. Credit hasn't been a blessing to you up to this point has it? I'm glad to hear that you haven't used credit anymore. Have you ripped up the cards? Also, getting a secure cc would be a horrible idea, you need to focus your energy on getting out of this mess. To solve your problem your going to buckle down and arrange your debts from lowest to highest and pay them off in that order regardless of interest rate. Take it from someone who has done this and paid off more than 50 in debt in less then 3 years. You didn't lay out your budget in detail so if you could do that we know what exactly we have to work with.
Thanks
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Old 05-26-2012, 08:46 AM
hotmess hotmess is offline
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Default Re: Financial Hardship for years, Trying to Recover (Long)

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Originally Posted by littleroc View Post
My advice for you is to quit worrying about your credit score I can tell you how to fix that after you work at eliminating your debt. Credit hasn't been a blessing to you up to this point has it? I'm glad to hear that you haven't used credit anymore. Have you ripped up the cards?
I stopped using credit cards a few years ago. Use only cash cards and it's done wonders for me in terms of controlling my ability to live within my means. Gives me a good reality check when I'm spending to see the money taken out of my balance on the spot. -- Good advice - - get rid of the credit cards.
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