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mardigrasque

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Debt repayment - when does it make sense to PIF?
I hit a rough patch in 2012 & 2013 - lost job, car repossession, credit cards charged off. 2014 was better and 2015 has been great. I have a new car, secured card and am in a position to start paying off my old debt. In the last six months I've improved my credit score from 490 to 576...my goal is to get to at least 600 by late spring, so I can qualify for an FHA loan.

Here are my sticking points:

First Premier. Charged off in 2012. Tried PFD. No dice. Since a charge off is bad no matter what and they won't delete, should I just settle and save some cash on this one?

Calvary Portfolio and Portfolio Recovery. Old Cap One cards. Same situation. No dice on PFD. So, does PIF make sense?

Lastly, I sent a settlement offer to finance company re: repossession. They have not responded. What should my next steps be?

All help is appreciated.

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Are the debts within the "Statute of Limitations" to be sued for in your state? If they are, then you may be wise to take care of them to keep from getting sued. If you can no longer be sued for the debts, then it would probably be pretty foolish on your part to make any attempt to pay them as it would not help you in the least (except under certain manual reviews of your reports, but that doesn't happen much anymore). Paid collections and unpaid collections are both scored the same and are both bad. Do some reading on the FDCPA too, to know what debt collectors cannot do. In fact, do a lot of reading on paying old negative debt before you take any more action, and any more questions please feel free to ask.

Reply by
mardigrasque

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Thaks for your reply.

My state has the longest SOL for debt. So, I'll take care of the ones I have to. Don't want to be sued!

Two are reporting differently across credit reports, so I asked for debt validation. I'm hoping for a delete. One agreed to PFD. The others are small so, if I have to, I will PIF. I know it won't give me a huge credit boost, but getting collections accounts off of my report will help some.

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