Please advise or affirm I am taking the right steps

[SKH628]

I know its going to take awhile.... (to repair my credit and for you to read this) but I would really appreciate any insight

The bad news: My credit SUCKS. I know there are people out there in far worse conditions and those with less. My problem? I have been irresponsible. I’m finally realizing (at 37) that I cannot just skate by anymore and if I want to have anything for my future, I better get busy.

The good news: I am gainfully employed.

Here is my plan:

1. I have ordered my Big 3. I have my EQ report in hand and have gone through it while waiting for the other two to arrive.

2. I considered purchasing a new car about 2 months ago but decided I would be better off repairing my car and driving it for another year or two. The problem is that I have 30 inquiries on my report (about half are from auto finance places since I stupidly applied for a loan online – not realizing they would let a gazillion people run my credit). The plan is to send out delete inquiry letters to all (with the exception of the utility companies etc).

3. The really bad: I have serious student loan debt ($34,000) and I am in default. I am contacting The Tennessee Student Assistance Co. and its my understanding that if I make one year of payments on time then I will be taken out of default status. I need to get this in writing.

4. Really bad gets worse: Tax debt. I have a Tax lien that was filed against me this month. I am going to re-file my previous three years and work on a partial payment installment plan with the IRS. I am in the process of gathering proper forms, etc.

5. I have two repos. One shows as a CO debt on my account with the DMDFR as 6/04. Amount is $5,138. I plan to address this one later rather than sooner in my process. My rationalization is that I want to clean up the newer stuff first and its going to take me a couple of years at that point it may be better to just let this one fall off.

6. The second repo was a terrible situation in which I paid for the car and had one payment left ($400) (yes, I had late pays) and the remaining balance was for late fees and interest etc. I tried to work with the lender but they did not work with me. I was unemployed so, they took the car. Balance is $2,371. My question is do I try to pay for delete and/or settle with them or just leave it alone? DFMDR was 12/2006.

7. I have two CO accounts that are small (less than $500 each). My plan is to pay these two off and negotiate a pay for “pays as agreed”

8. I have one CO account that was a business card that I was responsible for – over half the debt on it is business related but I was in the hospital when it was due, then left my job, and found this on my report. What should I do?

9. Collection accounts. I have several small accounts in collections that are anywhere from $50 – 400 each) my plan is to offer a pay for delete. Starting with the smaller and more recent ones and working my way up to higher and older. Most are 2 years old so I will need to pay them all.

10. I have tried in the past to negotiate with Palisades. I have never received communication from them but have from a law firm W&A (I think). They say I had an MBNA account I asked them for a validation. I got an affidavit faxed to me. I did not use the ones as sophisticated as this site so should I try again? I am not sure but I think it may be a debt from a computer I purchased with the OC in 1997 or 1999. The SOL has run but they are showing on my report as an open account for $3,038. DFMD is 8/07 but it shows DFD as 8/2001. Type of loan shows as Factoring Company Account (debt purchaser). HELP!

[txlimo]

I'm new to all this and trying to fix my own credit. However, I'm going to throw in my 2 cents (give or take) on what I have learned by reading this site:

1) Read, read, and then read again on how to start up for Newbies. Trust me you will always manage to find something new that you didn't see the first time.

2) Get all 3 credit reports from www.annualcreditreport.com

3) DON'T pay any of the CA's yet...

4) Dispute the TL's (i.e. the repos, the CO's, collection accounts, etc) with the CRAs. You never know what may just drop off.

5) DV the accounts that come back from the CRAs as "validated".

6) Once you get the DV's back (if you do), then you can negotiate a "Pay For Delete" not "Pay as agreed". If the CA agrees to it, get it in writing prior to sending the $$$.

7) The student loan and tax debt you will have to try and work something out there.

Like I said, I'm new to all this and going through the steps myself, so anyone else who has more knowledge about all the steps please jump in and straighten me out.

[ShortBus]

You can dispute the EQ INQs online and they'll fall off without a hassle a few days later. There's a very long thread on it around here somewhere. It's worth doing, but be aware that it won't likely help your FICO much in light of your other derogs.

Some people recommend that you dispute everything at once, see what sticks, and use that momentum to attack the harder baddies. Others say that you ought to take it one step at a time so you'll learn as you go. I originally tried the shotgun approach when I was first starting out and now wish that I had paced myself. I made several mistakes that set me back a bit. I'd recommend that you only try and tackle one baddie at a time, and as you're awaiting resolution of it, be reading CIC voraciously and planning your next move.

Understand that this process is a marathon and not a sprint. A lot of people come in here expecting quick results because they need to buy a home, get a new car, whatever. Some get the occasional lucky break, but that's a rarity. You're going to be reading, reading, and waiting and waiting.

Having said that... figure out what's most important for you to first address and start there. While your post was very well-written and prefaced with a warning, it's too much information for readers. You to get better responses if you give us just one thing at a time to contemplate and advise on. It will also allow you to fully focus on one problem at a time too.

Good luck and welcome to club!

[NASCAR_Devil]

You can dispute the EQ INQs online and they'll fall off without a hassle a few days later. There's a very long thread on it around here somewhere. It's worth doing, but be aware that it won't likely help your FICO much in light of your other derogs.

Some people recommend that you dispute everything at once, see what sticks, and use that momentum to attack the harder baddies. Others say that you ought to take it one step at a time so you'll learn as you go. I originally tried the shotgun approach when I was first starting out and now wish that I had paced myself. I made several mistakes that set me back a bit. I'd recommend that you only try and tackle one baddie at a time, and as you're awaiting resolution of it, be reading CIC voraciously and planning your next move.

Understand that this process is a marathon and not a sprint. A lot of people come in here expecting quick results because they need to buy a home, get a new car, whatever. Some get the occasional lucky break, but that's a rarity. You're going to be reading, reading, and waiting and waiting.

Having said that... figure out what's most important for you to first address and start there. While your post was very well-written and prefaced with a warning, it's too much information for readers. You to get better responses if you give us just one thing at a time to contemplate and advise on. It will also allow you to fully focus on one problem at a time too.

Good luck and welcome to club!

Here's the thread on removing inquiries. It works and I live in a CSC state.

http://debt-consolidation-credit-repair-service.com/forums/showthread.php?t=263630

[SKH628]

I have started with the EQ online dispute of inquiries - we shall see what happens. I am also breaking it down. Step one is student loan rehab - I think that getting these out of default and paying on them in a timely manner wil have a significant impact to start and from what I understand, is relatively easy to get started/approved. I need all the positive reinforcement I can get to not slip back into dispair

[ShortBus]

I need all the positive reinforcement I can get to not slip back into dispair

I think a lot of people attempting credit repair (surely not CIC members though ) don't take the critical step of assessing why they're in this situation in the first place and how not to fall back in the same hole. For me, it was initially a failed business and then I just stopped caring as I watched my credit swirl the bowl. I stopped answering my phone and then pretty much stopped reading my mail too.

Since starting the road back, I've done a considerable amount of reading on personal finance. My credit repair (and CIC) is only one facet of my regaining control of my life. I've had to relearn how to manage money and be more conscious of balancing my wants vs. needs. It sounds like you've already started that soul searching and I encourage you to continue.

One additional point... that nagging sense of shame and despair will pass very soon. A lot of that is do to the unbelievably supportive people here, but it also has to do with the certitude of finally making the decision to stop digging that same hole.

[Elrey26]

Great post ShortBus... One of the most important things I've learned from this website has been to better manage my personal finances. Getting rid of the old baddies is just an additional benefit. This site and the members here have helped sooooo much. Thanks to everyone...

[gator944]

ShortBus is right on point as usual. A year of unemployment in 2001 (I'm a Telecom Engineer) forced me to make some tough decisions. After a few months of paying on my credit cards (late I might add) instead of buying groceries, I finally gave them up. Then the fix your credit credit cards started showing up. I jumped all over them in an attempt to get back to where I was. I don't think a single one of them lasted more than 6 months in my pocket.

I was digging and digging and digging to try to "fix" my situation. It was when I stepped back and looked around that I realized how deep the hole was. That's when I quit digging.

The phone ringing and letters showing up was nerve racking. Kind of like being bombed. The shelling has been quiet for about a year now and I decided to pop my head out of the sand which is when I found this site, and what a god-send it is. In just a month I went from a credit score of 448 to 578. For years I felt like "poor me". Now I know and feel like I am in control.

Thank you ShortBus, Amerikaner, Debtorshusband, Recovering Attorney, Badyear2001, Methuss, Rob Nashville, rmuse, nascar devil, and all the rest of the awesome members here. You have no idea how much you help us.

SKH, looks like you're on the right track to me. Listen to what these people tell you. They've been there and done it with great successes.

[2001Badyear]

SKH,

It sounds like you have taken the first, and neccesarily, hardest step. Much like I suspect AA works you have to wake up and decide to take control of your life, rather than have your life controling you. You have done that. It appears your college money was well spent, at least, as you write very well.

I agree with your tact to go after the student loans first. It was my biggest priority out of school and wanted that to go away as soon as possible.

I'm very visual, so I created spreadsheets to layout the bad in one place and use that as a guide to and means of tracking exactly what I have and when to do what. I love getting to update, especially with a light grey line through the entry meaning deleted. Left most columns are "round one" - "action/reaction" and add to those as I go. Just keep plugging away at it, as it's a long trip.

Shortbus, very good answer you provided and agree completely. This is a multi-staged process and if the goal is to get credit to go out and repeat what got us here in the first place, you do not yet have it figured out. I believe most here are truely trying to get on the high road to personal finance and this is but one of the steps.

I vote that Shortbus can graduate to Longbus or at least Mediumbus??

Gator, although I appreciate your comments, I'm not at all sure I belong in the company of the others you list, although agree completely with those other assesments. (except Amerikaner, as his head is way too swelled already, so we NEVER put these things in writing about him ) Sure we think it, but NEVER in writing, he prints and wallpapers his house with these things.

OP, Good luck and remember this is just step one. You've made it and landed on firm ground not run with it.

[SKH628]

Thank you all for your insight, compliments, and support. It's a long road, but worth the travel and adventure.