[GridHppr]

I had posted for some advice in another Credit Repair forum with only one real response which (with no offense to the poster) really didn't give me much to work with (tho I was grateful for the reply)

5 Years ago in May 2002 I had been laid off from a great job in South Florida since 9/11 changed the world, and mine... then separated, evicted, divorced and essentially in one of the darkest times of my life. My ex-wife was smart enough to not leave any liability of hers behind and I was dumb enough to let her (Nothing in her name).

I moved out of Florida August of 2002 and now reside in Kansas (Yes - its as biggoted as you'd think).

I managed to get by with the help of some very good friends, love, support and some luck...and 5 years on, I'm getting my life back on track. I've got a great job with a solid company, and...not including the wreckage from 2002, I'm almost debt free, except for a small (20%) balance on a small secured credit card which is up to date, 9 months old and never late.

Of course, as we all know, the mess of the life I left behind didn't get magically cleared up while I sat in my hole and waited... and is still there sitting on my credit report.

What to do...

The recent copy of my Equifax reports this:

I have a vehicle repossession which has been purchased by a CA - around 8k still owed.

The mortgage is paid off and closed, with a lot of 120s (Paid off by my ex-parents in law in exchange for me removing myself totally from my ex-wifes life)

A signature loan which has been purchased by a CA (LVNV)- around 4k

A Credit Card which has been Charged Off for around 1500

A Telephone Bill showing in collections for around 300

- These are all valid debts that I hid away from like a fool.

The date of any last payment was May 2002 when I made the mistake of hiding away in a dark hole for 2 years (I wish I had found this site back then, and have just read many many MANY awesome posts that date back prior to then)

While I am (aside from the 5 year old mess) debt free (except for the one tradeline), I have very little money left at the end of the month (...better than the other way round, I suppose), I'm trying to build an emergency fund, but given some setbacks, I'm only up to around 200 in savings. I'd say maximum of $50 a month disposable income plus $35 a month in fun hobbies for me that I can cancel if necessary(I do get full value of that 35 bucks in entertainment every day of each month)

I have a $4000 401(k) that I can borrow up to $2000 from (not an ideal solution, but...like the wheelbarrow, I shall list it as an asset)

I do not get calls from any definite CAs, but I do get a number of calls which show up as Not Provided, so I believe there may be a very half-hearted attempt ongoing to collect on some of the above debt.

While I would like my conscience to be free and clear, by settling valid debt, I do not see how that would be possible without taking decades and decades to clear up, and what would be even worse is if while "doing the right thing" I end up hurting my CBR even further. - I would also love to have a "clean-ish" slate and start fresh and smarter knowing what I know today.

To save you from having to look it up - The SOL in Florida is 5 years but is suspended when you move out of state. KS is 6 I believe.


My goals are to be financially secure with good credit, preferrably within 2 years. I'm willing to live with myself - the me who skipped out on a valid debt, provided that I never ever EVER default again - I was very wrong to do so, and I plead that we all make mistakes.... errare est humani (or something like that, but in Latin), and everyone deserves a second chance eventually.

What course of action should I put into plan here?

Thank you in advance for your responses, whatever they may be

[Enigma]

Since you are so close as you say, don't apply for any credit. Don't raise any flags.

[jlynn]

Without delving into the intricacies of SOL - lets use KS 6 year SOL. In appx May of next year (6 months) these CA's will be unable to sue you and win. I would stay under the radar for the next few months (that means don't mess with your credit reports), and then you can start making this stuff go away fast and furious.

The repossession may be longer, shorter, or the same - something you will need to check on.

First and foremost, you do need to build an emergency fund - IMHO, you should focus on that first. Otherwise, one bad turn, and you are right back in the same boat.

Edit - Don't touch the 401K. Although it isn't truly liquid, it is the closest thing to an emergency fund you have right now.

[GridHppr]

sorry for the double post

[Hedwig]

I merged the response from your other post here and deleted the duplicate post.

[GridHppr]

thanks Hedwig

[Hedwig]

No problem!!

[Depressed]

Some time ago after my first divorce I need to come up with some extra money to buy a used auto. This is what I did.

Instead of claiming 1 or 2 (dependents= me & son) for my tax withholding each pay check, I choose to claim 0.

Yes I knew that I would pay more in taxes, but at the end of the year I would get a bigger check than I otherwise would at one time.

I knew myself well enough to know that I would not faithfully put enough money aside each pay period to buy an auto so I felt this was my best option. Btw, in first marriage we filed BK so getting a loan was out of the question.

I did get my auto the first year out on my own, and in the end I really did not miss the money difference from the tax with holding. If in the same spot again, I would do it again.

This may not be a solution for you, but it is something to think about to make your nest egg a little bigger each year.

[roybean]

Originally Posted by GridHppr

I had posted for some advice in another Credit Repair forum with only one real response which (with no offense to the poster) really didn't give me much to work with (tho I was grateful for the reply)

5 Years ago in May 2002 I had been laid off from a great job in South Florida since 9/11 changed the world, and mine... then separated, evicted, divorced and essentially in one of the darkest times of my life. My ex-wife was smart enough to not leave any liability of hers behind and I was dumb enough to let her (Nothing in her name).

I moved out of Florida August of 2002 and now reside in Kansas (Yes - its as biggoted as you'd think).

I managed to get by with the help of some very good friends, love, support and some luck...and 5 years on, I'm getting my life back on track. I've got a great job with a solid company, and...not including the wreckage from 2002, I'm almost debt free, except for a small (20%) balance on a small secured credit card which is up to date, 9 months old and never late.

Of course, as we all know, the mess of the life I left behind didn't get magically cleared up while I sat in my hole and waited... and is still there sitting on my credit report.

What to do...

The recent copy of my Equifax reports this:

I have a vehicle repossession which has been purchased by a CA - around 8k still owed.

The mortgage is paid off and closed, with a lot of 120s (Paid off by my ex-parents in law in exchange for me removing myself totally from my ex-wifes life)

A signature loan which has been purchased by a CA (LVNV)- around 4k

A Credit Card which has been Charged Off for around 1500

A Telephone Bill showing in collections for around 300

- These are all valid debts that I hid away from like a fool.

The date of any last payment was May 2002 when I made the mistake of hiding away in a dark hole for 2 years (I wish I had found this site back then, and have just read many many MANY awesome posts that date back prior to then)

While I am (aside from the 5 year old mess) debt free (except for the one tradeline), I have very little money left at the end of the month (...better than the other way round, I suppose), I'm trying to build an emergency fund, but given some setbacks, I'm only up to around 200 in savings. I'd say maximum of $50 a month disposable income plus $35 a month in fun hobbies for me that I can cancel if necessary(I do get full value of that 35 bucks in entertainment every day of each month)

I have a $4000 401(k) that I can borrow up to $2000 from (not an ideal solution, but...like the wheelbarrow, I shall list it as an asset)

I do not get calls from any definite CAs, but I do get a number of calls which show up as Not Provided, so I believe there may be a very half-hearted attempt ongoing to collect on some of the above debt.

While I would like my conscience to be free and clear, by settling valid debt, I do not see how that would be possible without taking decades and decades to clear up, and what would be even worse is if while "doing the right thing" I end up hurting my CBR even further. - I would also love to have a "clean-ish" slate and start fresh and smarter knowing what I know today.

To save you from having to look it up - The SOL in Florida is 5 years but is suspended when you move out of state. KS is 6 I believe.


My goals are to be financially secure with good credit, preferrably within 2 years. I'm willing to live with myself - the me who skipped out on a valid debt, provided that I never ever EVER default again - I was very wrong to do so, and I plead that we all make mistakes.... errare est humani (or something like that, but in Latin), and everyone deserves a second chance eventually.

What course of action should I put into plan here?

Thank you in advance for your responses, whatever they may be

Hope I am not getting too personal here, but are you trying to do something such as purchase a home or a business...what's worrying you? As mentioned above, you should lay low for a while unless there is some urgency.

I know it sucks having the dingys on your report(s) because you wanna be whole again. I am assuming that the info you have is from hard copies of reports and not online stuff, right?

[GridHppr]

Hey RB. Mainly I'm concerned about getting my Fico up, and its my understanding that the sooner you start building good credit the better. But I'm pretty damn sure I don't want a knock on my door from a summons server.

I can wait before I really start to build my scores up again, I'm not in a position to buy a house, can't afford a car payment just yet, so there's no time limit I'm up against.

The info I have is from annualcreditreport.com, Equifax only at the moment. So I think that would be online only, I'm not sure what the difference is, but I'm here to learn.

Thanks for all your replies so far.

[Hedwig]

The online reports don't always show things the same way as the individual hard-copy reports.

The first thing you need to do is to order the hard-copy reports from each bureau.

If you're not going to buy anything major in the next few years, don't get obsessed with scores. Concentrate on getting the negatives behind you and building your credit.

If fact, the act of building will probably lower your score for a while, as you will have inquiries and accounts with short history.

While you're waiting for your reports, read as much of the essentials and credit repair forums as you can.

[jlynn]

Originally Posted by Hedwig

The first thing you need to do is to order the hard-copy reports from each bureau.

annualcreditreport.com is accurate. It may be laid out differently, but its direct from the CRA's and is a good report to use.

If you're not going to buy anything major in the next few years, don't get obsessed with scores. Concentrate on getting the negatives behind you and building your credit.

If fact, the act of building will probably lower your score for a while, as you will have inquiries and accounts with short history.

While you're waiting for your reports, read as much of the essentials and credit repair forums as you can.

Hedwig is right, but I would add that time also improves your score, so the older these baddies get, the less impact they have.

[Hedwig]

That's why I always say not to obsess on scores if you're not going to need to buy a house or car in the next few years. So many people check scores daily, worry about every change. Time takes care of a lot, and building and paying on time also helps.