Short backstory, I fell into severe depression and completely neglected my accounts. phone harassment by debt collectors only made me feel worse. I ended up leaving the country for 2 years to be with family and receive treatment.
I'm back now, feeling a lot better but my debt has ballooned and I have no clue how to proceed. I really need advice if I can impose on your time.
In what order should I pay them?
Should I settle any or not?
If so, what amount/percentage should I settle for?
What is the best course to repair my credit?
How much extra it would cost VS. settling?
My experian score is currently 565. I have gotten a credit report back in November 2011 and a new one a week ago (july 2012). Some of the balances have stayed the same and some have increased (!).
here is a summary of my debt, taken from experian report. I include the balances on both credit reports to show the evolution.
american honda finance(returned lease car before end)
11/2/2011 $3914
07/24/2012 same
KD sep 2009
Amex
11/2/2011 $365
07/24/2012 same
KD feb 2009
Asset Acceptance LLC(no idea..Credit Card?)
11/2/2011 $5933
07/24/2012 $6407
KD keeps moving...
Citibank (student loan)
11/2/2011 $22 + $44
07/24/2012 same
KD may 2010
Discover FI SVCS LLC
11/2/2011 $701
07/24/2012 $881
KD keeps moving
Enhanced recovery col
11/2/2011 $672 + $715
07/24/2012 $672 ???
KD apr 2011
Student Loan
11/2/2011 $9100
07/24/2012 same (they say $9350)
KD sep 2010
Rentdebt auto col
11/2/2011 $3065
07/24/2012 same
KD feb 2010
Total: $24500
Total without Student Debt: $15348
Credit rating: 565
Posts: 3
Credits: 179.9 Send message to debtcon.20.gozu
I can see replies in my notification emails but not in the thread itself. What gives?
Someone asked where I reside, I live in Florida. The SOL is not for another 2+ years. (5 years in FL).
Someone suggested debt management instead of debt settlement. What's the difference?
What difference does it make with regards to credit repair? I really need to know if I should be trying to avoid debt settlement or not.
How do my different options impact my credit repair process? Should I be getting a secured credit card before paying off my debt? Should I be doing something else?
Debt Samaritan
Posts: 1616
Credits: 28160.064806048 Send message to waffles
The site is a little buggy, don't worry too much about that... in a few days all the posts will appear in the thread.
As for your debts, a secured credit card is the last thing you need to be spending money on right now. There is absolutely no need for you to get a secured card to rebuild your credit when you currently have all this outstanding debt. What type of income do you have? How much money do you have on hand (including savings)? Can you get help from your family (maybe a couple thou)? Let us know.
How to deal with illegal lenders, courtesy of OhioGal
How to write a proper debt validation request, courtesy of SOAPLADY
How to deal with a Collection agency contacting you for PDLs
Debt Samaritan
Posts: 16655
Credits: 297112.45101251 Send message to SOAPLADY
Actually your SOL would have tolled (frozen) while you were out of the country, so your SOL would be extended.
Are your student loans private?
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.
SOL for all states
http://www.debtconsolidationcare.com...imitation.html
Debt Samaritan
Posts: 197
Credits: 5093.15 Send message to drjonah
In my opinion, take care of the student loans first. From there, it all depends on what your plans are for the future. If you are going to be in need of a loan of any kind, then get rid of those collection accounts on your credit report otherwise no bank will even look at you.
Posts: 3
Credits: 179.9 Send message to debtcon.20.gozu
I don't know what my student loans are but I just made a $1000 payment today and I am entering the rehabilitation plan paying $350/month.
I have about $1400 in my bank account currently and I just started a new job 3 weeks ago where I'm making $4000/month, which is why I'm now trying to tackle my debt now. I figure I can save half of that and still have more than enough for expenses.
Posts: 3
Credits: 179.9 Send message to debtcon.20.gozu
Yes, I am paying my student loan now and I want to get rid of my debt. The question is what is the best way to go about it?
Debt Samaritan
Posts: 197
Credits: 5093.15 Send message to drjonah
good for you! Once you finish rehabbing your student loan that will definately raise your credit.
What you should do next is pull up all three of your credit reports and clean them up. For all the collection accounts, dispute them immediately. For the non-collection accounts, just ask to have them verified.
Once your credit reports are cleaned up, then you can start to tackle the accounts.
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