How do I recover from so many chargeoffs?

When I was 18 (big shock) I chraged a bunch on numerous credit cards, and was not able to pay them, so they are on my report as charge offs. The stupid thing is i only owe a total of maybe $6,000 to get everything paid off. So I wondered what is the best I can do to repair my credit? I dont make enough or have enough on me at any given time to pay of those charge offs, and they wont let me pay little at a time. I also obviously can%26#039;t get a card or loan to pay this all of, then pay that off. And I have nothing to put a lein on. Should I really consider bankruptcy? Or what can I do? Im almost 23, and am just going backwards in credit from all of this.

How do I recover from so many chargeoffs?

As a credit advisor I always counsel my clients to pay off the debts they owe. And my advice to you is the same, pay them off. You borrowed the money. If you are an honorable person, pay back the money.

Unfortunately, life isn%26#039;t that simple. As you stated, you don%26#039;t have the means of paying off these debts. If you haven%26#039;t been contacted by or are no longer being contacted by collection agencies, then just let it go. These are seriously damaging to your credit report and score but the fact is that they are so old that they don%26#039;t carry as much weight against you now. Begin planning your strategy to rebuild your credit now. Credit restoration (not repair) is a legitimate option but it is costly and with as little time as you have left before these fall off your report, it isn%26#039;t worth the money to do so.

Start rebuilding with a Wal-Mart card or something like that. You will have a high interest rate, but that is just tough, you have earned it by not paying your previous obligations. But the good news is that this will only be for two to three years. Once you have established a track record of paying ON TIME, and that other negative information falls off your record, other credit card companies will start offering you their products at lower interest rates. DON%26#039;T EVER HAVE MORE THAN THREE ACTIVE CREDIT CARDS! And keep the balance of those cards at less than half the limit. These are two sure ways to increase your score quickly. After you have established a good track record, try for a car. Next thing you know, in about five or six years from now, you will be ready to apply for a mortgage!

This is a more traditional approach to credit management, but the advantage you have is your age. You will be able to recover from your past transgressions early enough to still be able to take advantage of all that life in America has to offer.

Good luck to you.

If you have any questions about credit management issues, you may email me at nebula7693@yahoo.com

How do I recover from so many chargeoffs?

try some credit repair company like FREEDOM or something like that just check your local yellow pages and you will find this kind of companies that will help you.

How do I recover from so many chargeoffs?

you might want to try a consumer credit couseling sevice in your city they could help you consolidate your credit cards and work with your creditors to get lower monthy payments.

How do I recover from so many chargeoffs?

DO NOT BK over $6,000!

You can do this - it just takes a little effort.

The %26quot;charge off%26quot; part means that the lender has already written this off as an %26quot;uncollectable%26quot; debt. This is good for you because it takes the pressure off - but it is bad because it is a bad reflection on your ability to pay your debts. The good news is that with a little time we can fix it.

1st thing is to attack each debt 1 at a time. The debts will occasionally be sold (if it hasn%26#039;t happened already) to collection agencies. These agencies pay 20-40% of the cost of the debt hoping to collect the full amount eventually. Therefore you can usually settle the debt with them for a portion of the original amount. This takes some time, but you seem to have a long view of this process so you can do it. Just pick one that you can afford to pay and call them. Tell them you will settle if they give you a good deal, otherwise you will call the next account because you can only pay off one debt this year. Repeat this for each account. Even if your account isn%26#039;t sold - they have written you off, they may be willing to work with you and agree to show the account as PAID.

Once you have settled your accounts and they are all showing as PAID, then you are in a position to address them with the credit bureaus. In order to keep negative credit info on you, the bureaus have to have %26quot;accurate and verifiable%26quot; information. Since the charge offs are likely listed under 2 different companies (the original and the collection agencies) and the dates and amounts are likely conflicting, you have an opportunity to dispute each account. Since we are now dealing with OLD PAID collections, the ledners are more likely to not respond to the agencies%26#039; verification requests. Just send a simple dispute letter to the 3 credit bureaus stating %26quot;I dispute the following accounts%26quot; and wait for the responses. Then - with some luck - your old debt is deleted. Even if it doesn%26#039;t come off - old credit counts for less and less every year as long as you have new credit as well (but a BK hurts for years).

During this time it is very important that you not neglect your other credit (you must have other credit). You should maintain (with good payment histories) 3-4 open credit accounts. So get a gas card and an overdraft visa from your bank to start off.

Good luck!

How do I recover from so many chargeoffs?

Just dont pay them, it will come off in a few years and they cannot come after you anymore as of right now depending on your states statute of limitations. If it happened when you are 18 you only have 2 years left.

How do I recover from so many chargeoffs?

DO NOT CONSIDER BANKRUPTCY..time is your best friend. The charge off accounts remain on your credit report for seven years. After that they%26#039;re removed. Seeing as you ran up these debts when you were 18 and you%26#039;re now 23, they probably won%26#039;t be there too much longer - maybe a year or two depending on the dates they were deemed charge offs. You%26#039;ve waited this long so just wait a little longer.

Then you%26#039;re report will be free and clear.

The only problem will be that when they all fall off, unless you have some other accounts in good standing, there will be no information whatsoever on your account. Creditors may be suspicious as to why you are 24/25 with such little credit history. But it%26#039;s no big deal. You should try to get a secured credit card right now to build your credit so that when the charge offs fall off, then you will have an account in good standing that will help your score.

If you%26#039;re not currently applying for a mortgage or to finance a car, then it doesn%26#039;t really matter what your score is right now. Sure, it%26#039;s nice to have a good score...but just wait another while and you%26#039;ll get there.

Be Patient.

(FYI bankruptcy can remain on your credit report for up to ten years...so it would be there for yers longer than the charge offs).

How do I recover from so many chargeoffs?

I think that everybody can relate to this problem. I got my first credit card at 19, and I went straight to the mall. I ended up charged off too, which is the next worse thing to bankruptcy. Usually it takes about three months to come off your credit if you talk to the cc company. I do not know how your state works with this, but all are different. What I did was cancel all insurances off the debt. Even though the balance is charged off, the insurance is still on there. THis will bring some off your balance. Sometimes they will knock off a lot of the interest, other times they will not. A lot of people think that settling with the collection agency for a lesser amount is a good thing, not always. This is good if you are just trying to get the charge offs removed. Many companies will remove the charge offs and then put a slow payment history there instead. It is better but not the best when purchasing a home. If you pay the balance they are more apt to completely remove it.

How do I recover from so many chargeoffs?

Like someone else said, just be patient.

The very fact that you had so many charge-offs a few years ago will remain on your credit report until you%26#039;re 25 or 26 (depending on when the accounts were charged off). They will be listed even if you pay the entire $6,000 off today. Their status would change from %26quot;CHARGED OFF COLLECTION%26quot; to %26quot;PAID WAS COLLECTION%26quot;. Big whoop. You%26#039;re still going to pay through the nose with high interest rates no matter where you go.

Just tell the collection agencies to stop bothering you, and get on with your life.

Based on the statute of limitations (which varies by state), the current owners of these debts (the collection agencies) probably have no legal tricks up their sleeves (like court judgements and wage garnishments) to collect their money.

If these debts are not legally enforceable, the collection agency%26#039;s only resource is your own fear of a black mark on your credit history. Nothing else.

I take that back. Most mortgage lenders that see a charge off on a person%26#039;s credit report require you to go back and pay off the old accounts. So don%26#039;t buy a house in the near future unless you can settle the old debts.

If you need a credit card, get a couple of secured credit cards. Yes, the fees are high, but in a year or so of managing them right, you%26#039;ll have fairly decent credit by the time your young and dumb credit card antics have fallen off the credit report.

How do I recover from so many chargeoffs?

First things first: these charge offs are about 5 yrs old. Paying them now won%26#039;t do anything for you now. Best thing to do is let them fall off; you only have 2 years left and most of these companies know they won%26#039;t collect.