Credit Repair

Credit Repair?

I recently stopped paying my credit card and car payments for about 4 months to catch up on my mortgage payment. My mortgage and my car payments are now caught up. I plan on paying off 4/6 of my credit cards in the next month due to them having lower balances. The other two I plan on making a fairly large payment and then continuing with the monthly payment. I still haven't called the credit card companies to inform them of this. Should I argue the interest and late charges? I have debt from an internet and cable company that I really do not want to pay. Will this affect my credit score? If so, how much? and how long will it take for my score to go up after I pay these debts? Before I started getting behind, my credit score was around 670. Now I am not sure, and I'm afraid to check it! Thanks!

Public Comments

1. You won't be able to argue the interest and late payments on the credit cards because, as you stated, you stopped paying them. Also, if you don't pay the Internet and cable bills it will affect your credit, probably severely (charge off and eventually collection account). Once all your debts are paid off it will take between 18-24 months of on-time payments for you to see a significant score increase.
2. No, you can't argue. You didn't make the payment and you will have to suffer the consequences. Your financial situation is a disaster. I think you should plan to make at least the minimum payments on everything, to include the internet and cable. You wanted the service but now you don't want to pay..? Whatever. There are people that are doing everything they can to make the payments to keep their credit ranking and, well, HONOR THIER DEBTS...unfortunately the credit places are jaded because they deal with crap like this and everyone suffers.
3. What you refuse to pay will hang around for about 7 years, maybe as long as 10. Will these affect your credit rating, definitely. They will suppress it, and keep it that way. Pick one or two of your credit cards, pay them up to current so that there are no fees for being late and keep up the payments on them. I would advise that you pay the minimum plus at least 15% more than what is due. Get everything caught up, sell off what is making payments difficult, and bide your time. You obviously over extended yourself and have hopefully learned that credit is a monster that wants to eat you alive, and will do so at first opportunity. Live within your means, not outside of it.