Credit Card Debt in Charge Off and Collections-Please Provide Advice/Feedback

[creditnovice2024]

Hello,

 

Posted this on a different site and got zero feedback. Hopefully ya'll can offer some insight.

 

I currently have 12 credit card accounts that have either been closed by the creditor and are currently in house in their collections department or charged off. Total balance on all accounts: $80K. Credit Card Companies they're from: Chase, Bank of America, Wells Fargo, Citi, Discover, and USAA.

Charged off accounts are USAA (2), Chase (1), Citi (2), Bank of America (1), Wells Fargo (1).

 

Closed In Collection accounts are Discover (1) which is in a repayment arrangement with a 1% interest rate. And Citi (2 more) that are closed in collection without a payment arrangement set yet.

 

For the charge offs, I've called all of them and basically was told settlement is the only option other than paying the full balance due on the account. They said they will not delete or modify the charge off on my credit reports even if I were to pay the full balance owed on the account. My biggest concern is that my credit score has nose dived from the 700s to about 400 over the last year because of my financial situation and having to let these all go delinquent. Prior to a year ago, never missed a payment in my credit history (12 year history).

 

I am planning on offering each of the charge offs 20% of the balance owed to settle the debts. From my understanding, the notation on credit reports will say Charge Off-Settled-Paid.

 

For the non-charge off accounts, what should I do? For the Discover collection account, should I just end that arrangement and request a settlement of that balance? They aren't charge offs thankfully but paying the full balances won't accomplish anything to salvage my credit at this point. I'm planning on offering 20% of the balances for these account as well.

 

Is there anything specific I should know before making my offer to these companies to best set me up for "success"? I feel like I'm already at the point of no return for credit score death. 7 charge offs is brutal. I want to make the decisions that will best have my score recover fastest. Any feedback appreciated.

[hegemony]

On 6/5/2024 at 8:46 PM, creditnovice2024 said:

Hello,

 

Posted this on a different site and got zero feedback. Hopefully ya'll can offer some insight.

 

I currently have 12 credit card accounts that have either been closed by the creditor and are currently in house in their collections department or charged off. Total balance on all accounts: $80K. Credit Card Companies they're from: Chase, Bank of America, Wells Fargo, Citi, Discover, and USAA.

Charged off accounts are USAA (2), Chase (1), Citi (2), Bank of America (1), Wells Fargo (1).

 

Closed In Collection accounts are Discover (1) which is in a repayment arrangement with a 1% interest rate. And Citi (2 more) that are closed in collection without a payment arrangement set yet.

 

For the charge offs, I've called all of them and basically was told settlement is the only option other than paying the full balance due on the account. They said they will not delete or modify the charge off on my credit reports even if I were to pay the full balance owed on the account. My biggest concern is that my credit score has nose dived from the 700s to about 400 over the last year because of my financial situation and having to let these all go delinquent. Prior to a year ago, never missed a payment in my credit history (12 year history).

 

I am planning on offering each of the charge offs 20% of the balance owed to settle the debts. From my understanding, the notation on credit reports will say Charge Off-Settled-Paid.

 

For the non-charge off accounts, what should I do? For the Discover collection account, should I just end that arrangement and request a settlement of that balance? They aren't charge offs thankfully but paying the full balances won't accomplish anything to salvage my credit at this point. I'm planning on offering 20% of the balances for these account as well.

 

Is there anything specific I should know before making my offer to these companies to best set me up for "success"? I feel like I'm already at the point of no return for credit score death. 7 charge offs is brutal. I want to make the decisions that will best have my score recover fastest. Any feedback appreciated.

 

 

did any of them bite on your pay off offers? Is there any reason you didn't use BK to give yourself legal relief?