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Where to acquire funds for PFD?


matthewscott
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I'm looking toward the future and I think my voluntary repo is what is hurting my credit scores the most. I've made some pretty good progress so far. However, I don't have an extra $10,000 to pay off GMAC. I am paying them. I'm doing that because I feel the need to and it is still with GMAC. I agreed to pay on the phone and have not signed anything except the initial car loan. They haven't sold the TL or anything to a CA. (Thank GOD!)

Since that is obviously hurting my scores I'm tossing around the idea of a PFD. Of course, I have not contacted them with my intentions.

Here are some options that I have considered.

1) Keep saving and negotiate a PFD later.

2) Personal loan (credit union or family members).

3) Open a fixed rate balance transfer card and transfer the balance. Is that even possible?

If you need more infomation, let me know.

Here is my story: My progress thread

Thanks!

:)++

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I gether the obvious, a pfd deletes the debt from a credit report. Does this mean no longer an obligation to creditor? Is it possible to pfd an original creditor marking charged off? And are there any circumstances where employers or others could track down the orginal bad marks?

Finally, in what circumstances will collectors be willing to consider a pfd or which cards are more likely to agree it and would they do it at a discount?

Tks!

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hey tiger - start another thread - you will get better answers to your Q if it's got its own thread.

a PFD is a "pay for delete", by the way.

Matthew:

WTH are you thinking about opening a CC to pay off an auto loan for??? The 20+% interest rate alone is enough to scare me!!!!

A Personal loan is better than the CC idea, becuase then it'll show up on your CR as a good installment loan, and a diversity of accounts is good.

You are currently paying GMAC right? you voluntarily repo'd your car, and you are making monthlies to them?

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Matthew:

WTH are you thinking about opening a CC to pay off an auto loan for??? The 20+% interest rate alone is enough to scare me!!!!

A Personal loan is better than the CC idea, becuase then it'll show up on your CR as a good installment loan, and a diversity of accounts is good.

You are currently paying GMAC right? you voluntarily repo'd your car, and you are making monthlies to them?

1) The CC would be a last resort. If I went that way I would want a fixed for the life of the balance arrangement.

2) I might could swing the personal loan too. I would try family first then the bank or credit union.

Yep. Still paying GMAC. It's charged off or whatever but it hasn't been sold to another CA or anything like that.

I'm paying $200.00 every month and they agreed to not add interest or anything like that. I shouldn't have offered to even pay them. That was before I knew better. I just wonder if I stop now it could get worse.

I was thinking that since it is still with them (their in house collection department) that a PFD might actually be possible.

I could really use the $200 a month but I know I made a bad mistake by both repo'ing it and paying. However, I think I'll be in worse trouble if I quit paying now. It's tempting though. Since I'm paying any way that is when I got to thinking about possibly transferring the debt into something I would get credit for and get that off my report.

Not sure this is rational or even makes sense.

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They sold the car when they repo'd it right? and you owe the balance difference between what was on the loan originally and the amount they sold the car for, right? (just clarifications, have to get my brain back functioning after a hard weekend :p )

Yep, exactly. After everything said and done we owed about 13K and I have it around 9k now.

:shock:

Since I signed on the dotted line (as a joint account) I know I should work something out with them. I wouldn't have a problem with a loan to pay this off if I could get it off my reports.

I'm still thinking about what my move should be. This TL is a bit overwhelming. I hope to have my scores around 700 by the end of the year. Hopefully, I can figure out what to do by then. For some reason, I keep thinking that I would qualify for a loan with better terms if my scores were just a bit higher than where I am at now. I guess making contact with them would be the first step. I'm just intimidated. :oops:

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What kills me most about this is that I had a gut feeling not to go through with the loan.

That and right before the repo we had the chance to sell it through another dealer for about 4k more than what GMAC sold it for. Then we probably could have done something else for the extra amount that we owed. Or at the minimum just paid the loan with the proceeds from the sale.

Of course, they wanted us to sign up for another loan. The terms were not good and at the time there was NO way we could take on more debt.

I know this is going to sound dumb but at the time I thought just turning it back in would be the right thing to do.

I still hold the original dealer accountable in my heart. They sold us something we couldn't afford. After we got it our situation took a quick turn for the worst. At the beginning they were extremely pushy and wanted a quick buck. :evil:

This has been a very valuable but costly lesson.

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What kills me most about this is that I had a gut feeling not to go through with the loan.

This has been a very valuable but costly lesson.

That's exactly right.

I understand the idea of beign overwhelmed - I have a big TL I'm weary of tackling right now myself...Arrow Financial.

You can do it - make this one be the last thing you have to fix. in the meantime, keep paying good and see what that does for you. With your scores as they are on your sig, I'd be singing and be glad your scores aren't like mine!!!

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Thanks for listening to my babbling. I do appreciate your comments. They make me feel that I'm on track.

Oh, I know I don't have any complaints as things could be worse. (No matter what situation one is in, it could always be worse.) I've had some pretty good luck with my disputes and getting everything cleaned up. I've done really well so far. I just started the repair part in March. (My progress thread shows step by step what else is going on.)

Yeah, I think once I have everything else taken care of then maybe I can tackle this one. It might be that I just wait it out or stash some cash back and then maybe can work out a settlement with them. I think I'm just realizing that I have other things to deal with first.

I really do think that I'll get a loan at some point and just pay it off. I know it's crazy to most but I just want it to be done.

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