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L99

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  1. Wow this is great. Thanks--I was jumping between several things earlier with work and somehow missed it. Your notes are a dead-on description of the mindset you need. I've never really had the chance to amass any assets to sell, but the acceptance and you-need-to-act parts I finally became good at. It would have been great to read it somewhere instead of learning by repeated experience, but still. The way you describe it is exactly the mindset I had when I felt I'd arrived at the mindset that made me effective when it all went South. People even comment on how calm and decisive I become. I tell them I've just been through this (like a job loss, for instance) enough to know you need to act now and cry about it later. How curious! I'll check the book out. And it is a plus to have learned to be strong under pressure, however the lesson came.
  2. Agreed. I just assume in any bunch of people talking about money there are some wealthy people...like my ex who sold his company/retired at 45 in November but has made a lot of money in 2020 because he still had the industry resources to begin manufacturing masks quickly. I was just allowing for the fact that what I say doesn't apply to all circumstances. I guess maybe because it's in my reality, I don't know. Could have been left unsaid.
  3. For sure, and that's what happens. We're not talking about 6-9 months living the way we do when everything's grand...saving that much isn't practical. Unfortunately, at least in my experience, when things like this happen, for most people it means big changes no matter what. Some people always find a way to make a lot of money. For the others, it's hopefully that you're positioned to make the best of a bad situation. And that's different to different people. I myself can live without the frills if need be. I just can't have my credit destroyed again. Every time disaster has struck credit has always taken the longest to recover, and it hurts you every day in the meantime.
  4. @bigbear 6 months minimum and ideally 9 months. I don't know if it's hysterical to save for a year, or if you decide "hey, if it lasts that long, I need to accept the new normal and have made other arrangements by then." It used to be 3-6 months, but that wouldn't have saved me in the 2008 crash (unemployed for 24 months), or when I had to resign a good job to take care of a sick relative (18 mths), or from the current situation (which for once I'm not affected by), etc. It would have saved me when my city was demolished in a hurricane and I couldn't work for 6 months, though. That's where my credit problems started. So I think if what sinks you will last beyond say, a 6 months' expenses build-up, nothing but independent wealth could probably save you entirely. But it at least can give you enough time to make some tactical moves and transition into something else...a new job or living situation, whatever. You definitely have to be resourceful...I've gone back into the restaurant industry 3 times during these situations so I could eat...and I have a college degree. But even that wouldn't be available now. So I think at least 6 and ideally, as Suze Orman says, 9 months. And if that's more than $30k, you can use the 6 months to downsize and figure out how to live for less. Just one personal note, being in a partnership/marriage/dual-income situation would have helped a lot, too. I've always been on my own.
  5. Oh wow, then I missed your point, sorry! I hadn't thought about this at all, so thanks. I have made mistakes like this in the past and I tend to freeze trying to decide what to do. So to answer your question, if someone invited me to a lawsuit I knew I could win, I'd go to court!! So ok..disputing within SOL is (duh) dangerous because it draws attention to something they may forget. I'd think this could also be said of trying to settle it within SOL, although maybe some people might be willing to work it out, I have no idea. But it seems like they don't have reason to work with me. So guess unless I can wait for them to be outside SOL, my only option is to call them and work out a payment plan, then? And I suppose PFD isn't going to be on the table while it's within SOL, so I'd then just be stuck with the record. But at least then it's a paid collection and won't weigh against my total utilization. Do you agree with my logic? I also need to get clear on how to conduct myself, what to say or not say. I keep seeing talk about admitting I owe the debt etc. But I haven't done any homework on that subject yet, so I will do that on my own. Thanks for your time. This is very helpful.
  6. I understand what you're trying to say, but there are those who advise to dispute it and work with them separately from your CR. My question isn't a moral argument, it's about what the best strategy is from among the strategies I've read.
  7. Hi, thanks. They are both very new. The DOFDs would be late 2018 or so. I would pay them rather than be sued, provided I have warning that that's where we are. For now, I just don't know if I should dispute them, and if so how or even how to approach them for a settlement. I gather I should wait until 2 years out of the sale of the repossession to dispute as they have 2 years to send me the required documentation of the balance. Otherwise, if I settle I don't know if the process should be to have a lump sum ready(I don't at this time) and offer a settlement, or wait for....I don't know what. And no, I haven't spoken to any lender yet. At minimum I want to wait for my scores to increase from the utilization correction from all the debt I just paid off.
  8. ...and where they fit in my re-building process and which helped me prioritize them over paying my last two (larger) charge-offs. I’ve been through a lot of crises outside my control. Market crashes (and I didn’t have one of those loans I knew I couldn’t afford), ensuing unemployment, major hurricanes, unexpected tragic deaths, periods of abject depression and then unemployment from those, no family help no matter what, et cetera, et cetera. And yes, this was definitely sad/unfair/tragic and all those things. Hard to understand why these things happen. BUT what happened on the money side is actually easy to understand. The truth on that side is simple. When the paychecks stopped, I didn’t have enough money to make my minimum payments. Not extra payments on a car loan, not 6-month insurance premiums paid up front, or credit card balances paid to zero every month. When tshtf—when we stop eating out and buying shoes—it wasn’t long until I couldn’t even make minimum payments. Maybe a repossession months in to a job loss is one thing (and some will say it’s not), but to think about what it means to earn a 30-day late on $40 minimum payment is pretty sobering. Emergencies happened, fair or not, and yeah it's hard when you've barely recovered from one disaster and here comes another one. But it doesn't change the fact that my backup plan was that I had no back-up plan. That's the other lesson anyway—emergencies will happen. Who knows—some crazy unknown virus could start spreading across the entire world killing thousands of people because we have no cure. And maybe it causes the entire economy to shut down...
  9. Oh, well maybe it's not then. I'm certainly not the one to assume is not mistaken!!! 😂Maybe I read it one place and just assumed everyone but me knew it already.
  10. It's standard advice...I think I just called it the wrong thing. All Zero Except One. All credit cards paid to zero, except one card on which you maintain around a 9% balance. Or I think I've seen some people say 4-9%.
  11. You all really helped with my AMEX situation, and I have done some more work. Could someone please help me decide what to do with two remaining charge-offs? Thanks so much in advance! J I just paid off all of my outstanding revolving debt, so I have zero balances on my credit cards. Once everything posts, I plan to adopt the AZEO plan at 9%. Besides the below, my only other negatives are a defaulted student loan I will soon begin paying and a $314 charge off I’ll offer a PFD FOR. I want to qualify for a FHA loan in 12 months. Do I offer settlements for these, or dispute? I’ve read the repossession dispute info found here as well as the whychat.me info but I'm still not sure how to act. NCFU--NetCredit $6690 09/2018 Charge Off Says it has been ASSIGNED to an attorney, CA, or internal collections and “Purchased by another lender.” BBVA USA $5260 05/2019 Charge Off Says ‘unpaid balance reported as a loss by credit grantor.” Vehicle sold September 2019 per CarFax report. I've received no letter about the sale or resulting deficiency, but did receive some letters stating an intent to sell the vehicle to recover losses around the time of the repossession. I also don’t remember being given any chance to bring balance current, but my thinking at that time isn’t trustworthy. FICO8 EQ 567 TU 589 EXP 561 Mortgage/FICO2 EQ 594 TU 552 EXP 574 *these scores were before paying all of my revolving debt down to zero yesterday. Utilization was 136%. Thank you!!!
  12. Just an update. I paid off the entire balance yesterday. USPS tells me I have a letter from Amex arriving today, so I assume that’s my Optima application. I also paid all of my other credit cards down to zero balances.

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