Can i save my credit?

Question

I am having credit cards problems , paying dabt off on 4 cards, I just ignored them for 1 year now and damaged my credit, Is it to late or can i save my credit? Whats the best way to pay of the debt, should i go to a debt specialize and consolidate my debt to pay off? How does this look on my credit report, ANy advice is helpful?

OK. I took all your advice , but one more question, some have sent to collections, but should i deal with collections or just call the credit card company and work a deal with them. Does it matter at this point
? which is better or should i deal with to try to improve my credit back on track,the collectiuons or back to the original credit card company?

Answer 1

your credit is definitely damaged, but when you start paying them now, that will also reflect on your credit bureau. it's never too late and try calling one of the debt consolidation places that you see on tv. i hear that it reflects poorly also, but at this point, it can only help you. good luck to you and kudos on making the decision to face your problems head on, there is always hope!

Answer 2

If you ignored your credit cards for 4-years like you say? They have been sent to collections. You need to contact all four of the companies and see what they have done with your accounts.

If they have been sent to collections? You will have that on your credit for 7-years so be prepared to pay high interest rates (if you even get approved) when you borrow money.

I agree with the first answer, there is nothing a debt consolidation company can do that you can't do for yourself.

Start paying back the money as fast as you can. A paid collection is still bad but not as bad as a paid one.

Answer 3

Your credit report changes with time. Bad credit gets old, No credit is worse than bad credit. It's always a good time to improve your credit. To use credit you have to learn how to play the game. Here's a few ground rules...

1) Never buy what you can't pay for. Use a credit card for the purchase then pay off all but $1 to force the credit bureau update of activity. Pay off the $1 with the next billing cycle.

2) Never use a credit card for a loan - see rule number 1

3) Learn the game. What's in a FICO score?

4) Learn your state's statute of limitations. Bad credit falls off after a specific period of time - paid or not unless there is a judgment. Be careful about waking up old debt (paying), you may reage it with the payment and reset the statute of limitations.

5) Read: The ABC's of Getting out of Debt by Garrett Sutton. There is a lot of good advice in there.

6) Don't be a victim because of ignorance or avoidance. Be proactive.

Good luck.

Answer 4

Unfortunately the late payments will remain on your credit report for 7 years. Start building good credit today by not making any more late payments, bring everything up to date as much as possible, if you have anything in collections pay them off immediatly. When evaluating you as a credit risk they look at everything on your report; however, if you are currently paying things off and not making late payments this will reflect positivly on your score. For example:I have never had a late payment, but I have newer credt. My husband had some major credit issues about 4 years ago that was finally all taken care of and his credit score is actually higher than mine now! So you aren't neccesarily stuck with a bad score for 7 years.

I haven't heard good things about most debt consolidation companies, make sure you do good research before you take this route. You may want to check with one of your current cards that you are paying off and see if they'll give you a good deal on a balance transfer and low apr if you consolidate with them (choose the one that you have had the longest). If you can't consolidate then pay off the highest apr card first (but still pay minimums on the rest!).

Answer 5

Do not go to a consumer credit counseling service (CCCS), lenders look at this as if you filed a Chapter 13 Bankruptcy, which looks very bad. It will take a longer time to clean up your credit this way. The fastest way is to refinance your home and include all the debt in the mortgage, if you own one and have the equity. It will also show you savings of hundreds of dollars a month right away. CCCS will charge you and drag out for a few years. If you do not have a home or any equity in the home the next best thing would be to pay all the credit cards minimums on time every month and try to save up to pay them off in full one by one.
What ever you end up doing it will take some time for these to clear off of you credit, just be patient. Good luck, any more questions feel free to contact me....

Answer 6

Are any of the debts with a collection agency? If not, your credit report may still be ok. Once debt is placed w/ a collection agency, they can report your negative score 30 days after they receive it. Paying them off as quickly as you can is the best way to relieve any negative on your report - it will not go away completely, but a closed account with a zero balance looks way better. For your own finances, a debt consolidator is probably the way to go - my friend condensed her mortgage, hospital bills from her daughter's birth, and other misc debt - went from paying over $1000.00 each month to around $400.

Answer 7

Ignoring the problem doesn't make it go away. You should have called each company and told them you were getting in over your head, can we please work something out so I can still pay you guys but make this a little more managable? They've most likely gone to collections by now, if they haven't yet, you still have a chance to talk to them yourself or a debt consolidation agency and have them be the middle man. A credit card agency never wants to send it to collections - If they (the original creditor) get 50% of what you owe, then they've found a really cheap debt collection agency.

Remember - A debt consolidation agency and credit clean-up agencies can't do anything for you that you can't do yourself. They are going to hurt you more than help you in the long run. Yes, you'll be paid off and up to date, but you'll still be viewed as high-risk since you went through an agency. Doing it yourself most likely won't put you in the high-risk catagory since you went to them and said "Oops. I made a mistake. What can we do to work together to fix it?"

If they've gone to collections, say bye bye to your credit score and purchasing a house or a car in the next 7 years at a realistic APR. You'll be paying everything in cold, hard cash. You may be looking at your day in court if the credit card companies or collections agencies decide to sue you.

If they aren't in collections, pick your lowest APR card. Keep that one. Transfer as much as you can to it. Pick your second lowest APR card. Transfer everything else to it. Rinse and repeat. My dad did this to get out of 80,000$ of debt, and he has a 760 credit score as of 3 years ago, and probably has closer to 800 now.

From hereafter, freeze your credit cards. Literally. Put them in a zip bag, fill the zip bag with water, toss it in the freezer. That way you have to think about a purchase before you make it. If you can't pay for it in cash, there's a good chance you don't need it.

Answer 8

I worked as a credit analyst for many many years. It always looks better for you make some type of attempt on your debt. Ignoring your credit cards for a full year is very, very bad and your credit is shot at this point. The only way to recover is to make on time payments for a very long time. If you unable to keep up with your payments, talk to credit counseling (CCCS) or a debt agency. Those still look bad on your credit, but far better than not making any payments at all!

Answer 9

Speak to a credit counselor:

When you are stuck in debt, consider all the available options. You will need to work closely with experts who will provide right guidance to clear off your debts. Credit counseling agency is one such set of experts, equipped to fight debt. These agencies have a program meant to solve each of the situations. Here we offer you a quick overview of two of the most commonly used programs, offered by these agencies.

Debt management programs provide confidential budget counseling meant to tackle every situation. You make a clear agreement with the agency to commence the process of clearing your debts. The agency then starts negotiating with your lender, who then sends you a lower monthly payment. Besides, you also get tips and tools to prevent any debt trap in the future

Answer 10

your best bet is consolidate your bills , cut up the cards,then pay off your debt and never get loans, or credit cards again. if you cant pay with cash you dont need it .