Make Payments or Payoff?

[guitarman_715]

Hi Everyone,

I am in the process of cleaning up my credit from losing my job twice over the past 5 years. So I finally have a good paying stable job and started cleaning up my report. I have already got 6 of 7 collections removed, so that is a good start.

So here is my situation in which I do not know the best action to take. I have several accounts in the 1k-2k range that I am going to save up for and pay for delete if I can, or just pay in full, no big deal. However, I have 2 major accounts that are really hurting my score.

I would like to know, would it be more beneficial to call these creditors and setup a payment plan, or just wait it out and save up the money to pay in full (which will take between 1-2 years to save up). I would like the best action to help my credit now, and how they would report if I did setup a payment plan? Thanks guys

The Accounts (Already Verified)-

Americredit (Repo) - $9,573
Sallie Mae - $7,731

[lisag72]

Sallie Mae should set you up with a payment plan - if you don't already have one. Are you in deferment or forebearance? Or has this been sent to their collections group already? Student Loans won't go away, so best to just start plugging away at it. If you default, they will garnish tax returns, paychecks, etc.

[guitarman_715]

Originally Posted by lisag72

Sallie Mae should set you up with a payment plan - if you don't already have one. Are you in deferment or forebearance? Or has this been sent to their collections group already? Student Loans won't go away, so best to just start plugging away at it. If you default, they will garnish tax returns, paychecks, etc.

Neither, it says the account is closed and charged off. It does show a past due balance. I haven't payed on the account in over a year or two.

[flashback]

OP-
just because it has been "verified" doesn't mean you can't investigate it further. - tips: request MOV (method of verification), investigation from CRA's.

Come up with a strategy to get those off your credit report without having to pay them.
these entries can be removed from your report, but you have to have a strategy and be persistent.

If you will make a payment, your SOL on that debt will re-start and you don't want that.

[flashback]

I would like to know, would it be more beneficial to call these creditors and setup a payment plan, or just wait it out and save up the money to pay in full (which will take between 1-2 years to save up).

I would do neither but get it removed from your credit report.

[RockDaddy]

Originally Posted by Lurlineme

I would go for a payment plan. I guess that's the good we can do for that!

NO NO NO.... don't do this!

You will re-up the Statue of Limitations.
And you don't want to do that....

-RD

[guitarman_715]

Thanks everyone. I will take your advice and see if I can beat these creditors. So my next action should be to do more disputing? When I orginally started disputing items it was before I came about this site, so I disputed everything online. Alot of stuff has come off, so what should be my next step in dealing with these two creditors being I have already disputed online? Any help is appreciated. THanks!