I have 4 credit cards I was not able to pay from about 4 years ago. 3 of them have gone to Midland Credit Management. Ball-park figures on the debt is $ 5,000, $ 1,200, and $ 1,200 for a total of $ 7,400.
Now I don’t have $ 7,400 laying around (I even checked under the matress), but my car has 2 weeks left of payment on it. My plan is to sell the car back to my credit union (they would give me about $ 9,000 for it) and use that money to pay Midland. Whatever money I have left over I would dump back into my new car loan. I discussed this with my father and he said he wouldn’t do it because it’s possible for something to happen to the car and end up upside-down on it. I’m not worried about this as the car runs great and only has 42,000 miles on it.
I want to settle my debt this way because:
1. I would rather pay auto-loan APR over whatever ridiculous rate Midland would charge.
2. I would rather do business with my credit union instead of collection agency scum.
3. Loans from my credit union come out of my check weekly before I even see the money. There’s no way I can’t pay this loan back unless I lose my job.
I plan to negotiate a settlement amount with Midland first, and THEN get the loan from my credit union. I’m afraid if I get the loan first then try to negotiate with Midland they will somehow see that I have a new auto-loan and make me pay the full amount.
I’m also a little worried about the negotiation part. any tips on this is greatly appreciated.
My 4th unpaid card is a Chase card. It shows as closed on my credit report with the remark “Charged off as bad debt Cancled by credit grantor” however it still has a balance. Does this mean the debt has not been sold off yet? If I go to a Chase branch local to me can they tell me who it was sold to or handle settlement on the card? The balance exceeds the limit on the card… will they accept a deal of the credit limit and forgive the balance if I wear my negotiation pants?
I am interested in a Chase freedom unlimited card, will they approve me with this closed card in its current state? Will they approve me after I settle/pay the card? My credit karma FAKO score is 687/686.
Thanks for your time, sorry the content matter of this post is all over the place. I’m just somewhat excited because I feel as though I am finally seeing the light at the end of the tunnel.