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Helping friend, unique situation, where to start?


FredWilson
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Hi all,

A good friend of mine has asked me to help him clean up his report. He's in a unique situation in that he doesn't have any credit at all. Nothing showing on his reports other than some collections and judgments. I want to help him but I really don't know where to start. I'll summarize...

1) For the past 6+ years he has only lived on cash, land contract for his house, no cc's or loans.

2) Had a hospital visit last year that resulted in a $6,000 balance that has now gone to collections. The $6,000 is divided up by 3 companies, one for hospital, one for labs, and one for cardiologist.

3) Has a Sears card he stopped paying on in 2003 that went to collections (Asset Acceptance). They filed suit and got a default judgment on him in Feb 2008.

4) Has an AT&T balance that went to collections (Asset Acceptance) in 2006.

5) Has a Providian CC that he stopped paying in 2002 that went to collections (Great Seneca). They filed suit and got a default judgment on him in 2004. Palisades now owns this debt.

He has cash and wants to look at getting this stuff paid off and removed if possible. He also wants to start building credit and get a mortgage in the future. He's aware that there is no way that he's going to get any credit card without it being a secured card initially.

So, any help on how to get started on this would be greatly appreciated.

Fred

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Ok did you pull all 3 credit reports? How I would do things is by what is listed and how it is listed....Like charge offs, or judgements...

He can then decide what debts he wants to pay and negioate PFD or just removal of the trade line...

Looks like he will be working in this for some time, but don't pay right away, he has the upper hand on how much to pay to make them go away!!!

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