I am in an almost identical situation as AliciaMayB. My tax return will allow me to pay of 85% of my outstanding debt, which includes medical bills. I am attempting to reach "Payment by Deletion" agreements with each of my creditors. I've offered "P by D" to only one creditor as of today (ProCollect). They've informed me that they are unable to agree to my terms, even though I offered to pay 100% of the debt. I have no credit cards/loans/etc to pay off, only small collections. Some of these are on my credit as Charged Off's (utility company). My plan is to pay off all creditors who agree to the payment by deletion, and invest in 2 secured credit cards. After 30 days, I will again offer the payment by deletion to remaining creditors. If they again decline, I will use my remaining funds to pay off the debts. Although the collections will remain on my account, they will be paid off. Is this a good plan?? If not, please be a lifesaver and provide your suggestions. I greatly appreciate your assistance. - rbrussell My goal is to buy my first home by 1/2008 2/01/07 TU 534 EX 500 EQ 547 I've got a lot of work to do!
How much money are we talking about?If its a hundred here a hundred there it wont make that much of a differece what you do.When dealing with ca's remember do not trust these people.Get everything they agree to in writing.If a ca's mouth is moving their lying.
My goal is to be able to buy a house in January 2008. Unfortunately I am not BUILDING positive credit at this time. I recently paid off my truck loan, and I have no credit cards, loans, etc helping me out. PRO COLLECT - Balance: $40 - Original Creditor: PACES CROSSING - Date Opened: 02/2002 - Date Reported: 12/2006 CRED PROTECTIONS ASSOC - Balance: $55 - Creditor Name: CRD PRT ASSO - Original Creditor: HOLLYWOOD VIDEO - Date Opened: 01/28/2002 - Date Reported: 10/07/2006 WEST ASSET (MEDICAL) - Balance: $75 - Original Creditor: DENTON REGIONAL - Date Opened: 02/23/2002 - Date Reported: 10/01/2006 DENTON REGIONAL (MEDICAL) - Balance: $75 - Original Creditor: DENTON REGIONAL - Date Opened: 02/2002 - Date Reported: 04/2002 TXUELECTRIC - High Balance: $109 - Pay Status: Collection/Charge-off - Opened: 08/1999 - Reported: 11/2001 SAGE TELECOM - Balance: $134 - Pay Status: Collection/Charge-off - Opened: 10/21/2002 - Reported: 12/02/2003 VERIZON - Balance: $136 - Pay Status: Collection/Charge-off - Opened: 12/19/2000 - Reported: 12/02/2006 WEST ASSET (MEDICAL) - Balance: $158 - Creditor Name: WEST ASSET MANAGEMENT - Original Creditor: MEDICAL CENTER OF ARL - Date Opened: 06/04/2005 - Date Reported: 11/01/2006 CBA - Balance: $163 - Original Creditor: COMCAST SITE 825 - Date Opened: 04/10/2006 - Date Reported: 08/09/2006 CBA COLLECTION BUREAU - Balance: $204 - Original Creditor: COMCAST - Date Opened: 04/14/2006 - Date Reported: 08/09/2006 AFNI - Balance: $208 - Original Creditor: VERIZON - Date Opened: 09/23/2006 - Date Reported: 12/12/2006 PARAMT RECOVERY (MEDICAL) - Balance: $225 - Original Creditor: QUESTCARE ER - Date Opened: 08/18/2006 - Date Reported: 11/28/2006 TXU ELECTRIC - Balance: $824 - Pay Status: Collection/Charge-off - Opened: 05/2004 - Reported: 12/05/2005 ER SOLUTIONS - Balance: $893 - Original Creditor: WASHINGTON MUTUAL - Date Opened: 05/2004 - Date Reported: 07/14/2006
In my opinion, it will look worse if you pay the collections as it will show them as recent activity. I would absolutely pay them if they agree to delete. Good luck.
Another suggestion...have you applied for an Orchard Bank CC? It is much easier to obtain. It does have an annual fee, but it will help you start building some positives.
If your goal is a home purchase, then a couple of items: 1) You're better off to pay all of these outstanding debts, as no mortgage company will consider closing a loan until they're paid completely. Your best strategy is to negotiate "Pay For Deletion" where you can. 2) You will have to raise your credit scores to get any kind of decent interest rate. Your current scores will put you in the "subprime" market, with interest rates up to 10% or more! 3) You should get at least a secured credit card, and use it and pay off fully each month, just to establish some good credit history, and build up your credit score. 4) Even if you pay off these debts (without PFD clauses) you can still try some dispute tactics to improve your credit score, read the boards for all the processes on disputes. 5) Also start saving money for a down payment, you will definitely need one for a home purchase, and you will always need cash for all the costs that go along with the purchase.
New LOW APR Orchard Bank Card Have you checked out Orchard Bank's new low APR card? It is only available until February 14, 2007. Limited Time Offer: Orchard Bank Low APR Credit Card
Thank you all VERY much for your insight. Quick question about the Orchard card. Is it secured? If not, can I get approved with my credit scores? Thanks!
You can get an unsecured card. It's the easiest card to get, you stand a pretty good shot at obtaining one, IMO.
I've got a lot of work to do Unfortunately I wasnt approved for the unsecured card, but plan on sending in a deposit tomorrow for the Orchard Secured Card. What are the other unsecured/secured cards I should apply for? Currently I dont have ANYTHING building credit for me... no credit cards/loans/etc. Thanks!
Creditnet's bad credit section lists credit cards that help to rebuild credit. Some of the most popular for building/rebuilding credit are the Orchard Bank suite of cards, First Premier cards, Tribute MasterCard, and New Millenium Bank Platinum card.
Make sure you read the disclosures on all these cards before you apply.Some cards charge so many fees your better off with a secured card.
If your tax refund is that high, you have been having too much withholding taken out. You don't want a refund. If anything, you want to owe a small amount. You need to recalculate your required withholding, and corresponding allowances, and if necessary refile your W-4 and state WH form, at several points thruout the year. And no, the W-4 form worksheet is probably not a good way to do it, especially if you have significant itemized deductions.
I check with the lady here at my company who handles this stuff. She said that by law she has to tax my commissions at a higher percentage, so it would be hard to correctly change the amount I have withheld. Over half of my income in 2006 came from commissions. What should I do? My tax return should be around $5,000.
If your question is what to do with a $5,000.00 refund; then if buying a house is your top priority, you should 1) Pay off the debts on your credit reports per previous threads, 2) Put the money away into a 6 month CD (Certificate Of Deposit). In doing this, you may want to speak with your bank, and perhaps use this CD as security for a secured credit card through your own bank. Often times banks will do this for their customers. 3) Try to save as much as you can towards your home purchase, you will need as large a down payment as you can pull together. 4) Start reading all the "sticky" threads about the basics of credit repair, and start now. You WILL have successes, and your credit will improve. Make this a priority project, you will be amazed at the amount of money you will save with a lower interest rate on a mortgage. 5) I recommend that you visit www.about.com and www.bankrate.com and search for articles regarding buying a house. There is a tremendous wealth of information on these sites for all kinds of financial and real estate dealings. Again, Good Luck
Your commission income is probably being treated as supplemental income, which is taxed at certain fixed rates on the assumption that such income is a small part of your income so there is little overwithholding from using a high assumed marginal rate. Since half of your income is periodic, you can reduce the withholding on that part by filing a W-4 with a large number of allowances. You might, for example, based on your last year's income, estimate that X amount of income will be periodic, and Y will by commission, for which the WH is at the supplemental rate. If you then do an approximate income tax calculation for the whole year, estimating what it will be for the new year, you can estimate how much will be withheld due to suplimental income WH, and what remaining must be WH to meet your tax liability. Then adjust your allowances to meet that needed from your periodic income. Check it at 6 months, and then in Nov, to come within the 90% needed to avoid penalty. If you are underwithheld, add additional WH on your W-4.
