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Question By
gintama

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Charged off Credit cards- settle, pay full, pay-per delete options?
I defaulted on my credit card about a year and 3 months ago they are charged off.. before that I had a few late here and there like a 30day late or 90 etc.. I havent used my credit cards since 2013. All maxed. All my cards are closed now and are in delinquency status. I have a discover card $1100, Barclaycard 2,700, Chase 4,000 and Best buy card 5,500. There’s a lot of interest and late fees accumulated especially in the chase and best buy. I have a discover personal loan for 14k which I’ve been still trying to pay I’m almost 180 days late but they have not charged it off yet because I’m still making payments. If I miss one more they will. My credit right now is like 450. I don’t have anything under my collections though nothing reported i believe it's still with the original creditor. I’m looking to make things right and pay the credit card debt to my ability. I don’t want anyone to sue me down the road or garnish wages. And I don’t want this hanging over my head would like to start a repair on my credit as soon as I can. My husband thinks that by paying things its going be all better. It’s not my whole credit is damaged. I’ve gotten a lot of credit card settlement offers. I’m thinking to settle instead of paying in full the reason being is because I’m beyond repair. Even if I do pay in full eventually how will that help me? A person who has defaulted charged-off credit cards. There’s notes on my accounts -credit companies closed my cards all expect one (I closed chase). I’ll negotiate and ask for late payments to be removed but they can only do so much. I plan to hire a company to help me do that and ill try sending goodwill letters but They can’t clear my whole year delinquent history.. let’s be honest. I’m going to have to ride the 7-year boat and wait it out even if I pay full or settle. I was worried about the taxes but I have no assets ( no house no car etc. nothing under my name) so I can file insolvent on the form when the time comes and not add the cleared debt to my income. In my case I’m in the worst scenario I need some advice. I plan to call them to negotiate and what can be done. I know if I settle it doesn’t reflect well like paying full does. But how does paying full help me now in my position It going take a while to repair paying full or settling .. if I have defaulted-closed accounts with a ton of missed payments. Need some wisdom here please maybe i can get a few pay per delete. I Don’t have the money to pay full too. I have right now 1000 cash to use toward debts I want to bang out discover or Barclay or even both and see what they can do for me. Thoughts?

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Wow, ok.... So if you do not have all the money to pay in full a "Pay for delete" probably wont work.  When you ask for that and if they were to say ok, they would want there money right away.  You would not be able to make payments. So in your case I would just take the settlements. The damage has been done and at this point it wont hurt you any more then it has already.  Life happens and it is not always good.  So now it is time to move on.  Yes it will take seven years to have these fall off your report but as time goes on it will have less and less affect upon your score.

So after you get the settlements paid I would try for a secured card. You are going to need something pushing your credit score up and a secured card is probably the only way to go.  Even a secured card might be difficult but maybe try Open Sky.  You are going to have to be very good with credit from now on, so do a lot of reading here and other places on how credit works.  You will be able to get through this and get your scores back up with some hard work and knowledge.

Reply by
gintama

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Thanks for your advice, once everything is done i will wait a while to get a secured card anything to help raise it. I knew my options weren't good whether I pay full or settle.. you are right makes no difference right now. 

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