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Starting...Taking Baby Steps..Some Questions


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Thanks for all the information and support from this site.

As of this month, my debt breakdown is:

-- 4 collections accounts, ranging from $80 to $400.

* I DV'd each of them, got the green cards and waiting for response.

* I disputed each of them, and waiting for result of the investigations.

* If they come back verified/validated, I intend to send them a PFD letter.

-- B of A CC $4900 Charge-Off ($900 over the limit).

** I entered into an agreement with BOA to pay $100 per month. It is deducted from my account monthly, but the interest charges offset it.

** At the end of this month, I will try and pay about $300 to bring it current, and then see if I could clear the over limit within the next two months.

Positive TLs

-- I am up-to-date on my Suntrust car loan..but it will take sometime before the last years lates clear off.

-- One Target card from an ex partner on which i as an AU ... that has good history, but it was closed when the relationship ended)

-- I also applied for Orchard secured ($350) and got the card yesterday.

** do they report to the CRAs as secured cards?

As of this month, my FACO scores from the 3 agencies range from 520 (TU) to 580 (Equifax).

I am trying harder to pay off current debts and stay within low utilization? What can i do to decrease my BOA debt...I believe that is really hurting my scores at the moment?

Thanks - YY

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With collection amounts of $80 to $400 dollars, it may not end up worthwhile to get the debt itself reduced as much as the deletion. If they offer a 50% settlement, then you save between $40 and $200 a piece. Personally, I would PAY $40 to $200 to get a deletion, but you don't want to say that in your PFD letter.

Maybe in your PFD offer tell 'em you're interesting in settling the debt, but you want the adverse TL deleted from all your CRs. Perhaps they offer you a 70% settlement. You respond in writing that 70% would be great, if there's a deletion of the adverse reporting. They counter with a 60% settlement offer. You respond that would be great, if there's a deletion.

They'll likely budge on the dollar amount. You need to stand firm on the deletion.

On your car loan, you might try to goodwill the deletes. Keep the payments current. Tell 'em you were sick, laid off, a student in college, whatever the situation was. Tell 'em you've been extremely satisfied with them, and that you hope they can look past a few late payments and view your overall good payment history with them. Goodwill letters should be sincere and honest, or at least plausible. Don't send 'em CMRRR or they may start thinking "Is this freak planning to sue us?"

Orchard religiously reports, so keep it paid current. I don't believe there's was any indication that it's a secured card. I think Orchard is HSBC, and HSBC cards tend to be secured. It is helping, it's not hurting, so keep it current till your scores let you get an unsecured card.

On the BOA debt, are you still getting hit with overlimit fees? Borrowing from a 401K and withdrawals from an IRA are one way to beat the debt down. Cut out Starbucks, or at least go there less frequently.

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