First off I'd like to thank in advance, all those who take time out of their day to share their encouragement, sound advice and support for all of us who've hosed their credit in the past. I'm hoping that you'll be able to help me figure out what I should do here. 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 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 - 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 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
Well, if the last payment was in early 2002, it sounds like the SOL has run out on most of the stuff. That means you don't have to worry about paying them. I'm not sure about the repo, if the SOL is different for that or not. At this point, you should concentrate your time and energy on getting new credit and building up your history and scores. If you get a good current report, the baddies will not have as much of an impact. You might try disputing some of the debts. They may not be verified and will fall off your report. Have you tried getting an unsecured card? Whatever you can get, keep your utilization low. Build your history. Don't borrow against the 401(K)--that's retirement money.
