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720lady

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Hello Everyone,

 I need to make a very important credit decision very quickly.  I am 56 years old.  Had some negative happen with my savings.  I let most of my credit get in charge off status.  Is it best that i try to settle my credit with collection firms or pay the original creditors in full.  I have a friend helping me for now so the pay in full won't hurt me to bad.  I am also looking to purchase a first time home in less than 6 months to 1 year.  Please provide the pros and cons for me.  I can regain my prior credit card status very quickly due to increased income and help from friend.

 

Thanks,

Lady

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are these debts within the SOL for your state? FWIW, a paid charge off is jut as bad for FICO as and unpaid charge off. IMHO home purchase needs to be delays until you have credit and finances in line (i.e., not rely on a friend for income)

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Is the recovery for credit faster, better if I pay in full or work with collection agencies for a lesser amount?  I am looking for the fastest and cheapest route.  Or is there any difference?

 

 

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5 minutes ago, 720lady said:

Is the recovery for credit faster, better if I pay in full or work with collection agencies for a lesser amount?  I am looking for the fastest and cheapest route.  Or is there any difference?

 

 

As hege said, a paid charge off and an unpaid charge off count the same for FICO. 

You need to list the debts - amounts, DOFD, status (held by OC or CA, or even sold to a JDB). Also, you need to know SOL for your state in case the amounts are high enough to result in the wonder of the debt filing suit. 

Without that info, it’s difficult to give good advice. 

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Thanks everyone.  Without me listing all .... but made a mental note to check all of the above.  Not really counting on the friends assistance but my own additional income and some alternatives avail from .... would I be correct to assume that working with collection agencies for settlement offers is cheapest? And later wouldn’t be as difficult to remove as paying the full amount due to the original creditor and then requesting that the original entry be updated and the entry from the collection office deleted too?  With the scenarios I mentioned above can you give some projection on which is faster bettter and cheapest.

 

I will be adding additional income too of my own

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Ok I have a lot of bad credit, charge-offs etc  I can afford to pay monthly payments now without the interest amounts added and additional income.  I will start adding some new credit as I pay monthly on the accounts.  Is this a good idea or should I have another credit milestone to reach for.

 

thanks everyone!

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You're being pretty vague so you're not likely to get any answers with real substance.

 

The individual variables that make each person's situation unique are what make the advice applicable to each situation unique.  Without knowing what those variables are, people are hesitant to say "Do this" because it may make your situation worse, and that's not what we want.

 

 

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