Credit Card Reporting
My question is about the other cards, Household Bank is caught up but they have closed my card. If I keep making the payments to them will these payments how will they show up on my credit report?
I had a credit card with Sears before all of this started and they sent a letter telling me that they have closed my account. How bad will this affect me?
I have another Capital One and am working with their hardship department to bring it up to date.
The final one is Wells Fargo. I received a letter from a collection firm from them and am planning to contact them today ( this will be the last on I need to set up payment options with ). Since this has gone to the collection firm what impact will this have and if I agree to make payments to them can they still sue?
My plan is once I get everything caught up ( should be early March ) I will try to save enough funds to settle with each of the companies. I could really use some help in how to talk to the creditors and make deals with them.
My credit score is in the gutter and will there be anything I can do to start repairing it once everything gets caught up.
Thanks for your help...
Debt Settlement or Payment Plans Freaked Out by Collection Calls
In order to settle with them you will need to be behind. The banks you listed do not settle debts for less than what is owed unless you are at least a few months behind.
In a way, I get what you are doing. You got freaked out by all the phone calls and changed your mind about settling. But strategically, if you are going to make payments until March or April of next year, only to try to settle and fall behind again, you are blowing through 6 months or so of minimum payments for... well... nothing.
If you are already bringing the accounts up to date through payment plans with each creditor, and are worried about accounts being closed and impacts to your credit score, why not commit to pay the debts off instead of settlement.
As part of your efforts in getting payments on track with the banks you should be asking if they will reage the accounts. This would mean the accounts are brought current and can have a positive impact on your credit after several months. Not all banks will reage with you. Some banks offer to reage by using a credit counseling agency though.
Your household account, if payments are being made, would show the months you did not pay (30, 60, 90 day late). After a year or 2 these late pays typically begin to take on a stale affect to credit.
Dealing with a debt collector on the Wells account: If you set up payment arrangements and keep them up it is unlikely in the extreme that they would sue. Be sure you are getting interest rates knocked down or eliminated where possible.
Once you have an opportunity, sit down and get a grip on what it is you are trying to do about your debts and how you are going to get there.
I imagine some of your payment plans are temporary and some life of balance. If interest rates shoot back up on some, will you be able to still make payments?
What is happening in March that has you thinking you should then go ahead and stop paying and try to settle?
