Dbf paid off cc's!
Find a Conversation
| Wed, 03-08-2006 - 1:42pm |
HI everyone! I posted a few times about how my credit is in good standing but Dbf's is a mess. He had 3 cc's in collections and a line of credit through a store that was in collections, plus back taxes and being late on other payments as well. Well on Monday he received an 8K commission check for selling a 500,000 dollar house and it's all gone!! He paid his car up so it's current, PAIF OFF all accounts in collections, everything is up to date and he's got 4 thousand left to pay his taxes from 2004. Unfortunately we don't know how much those taxes will be, but originally they said it would be two thousand but since he didn't pay on time it will probably be more now. WE have to see.
But he is just so thrilled to have the collections agencies stop calling, and it's a huge relief! Over the next month he had about another 8K coming as well and we long as all goes according to plan he wants to pay off my car for me but he's not committing to it since you never know what will happen with real estate closings!!
Feeling good finally!

Congratulations!!
that's great news!!
Congratulations,
I think I'm remembering earlier posts where you were helping out DBF with some payments while waiting for those closings to go through. Hopefully the tax interest won't be too much more than $2000, so he can help *you* out in return with some bills. Congratulations on paying off those collection items.
I suggest that he wait a month so that his credit report will be updated, then request a copy of his credit report from all 3 reporting agencies so he can make sure those collection accounts were updated to say "Paid in Full" like they *should* be. Considering his credit cards and collection accounts are paid off, he should be able to handle paying for a nominal credit report fee. If any of those accounts are *not* listed as paid in full that should be, or if there are any discrepancies, please ask him to dispute those items. The collection companies can take their sweet time updating a credit report!
Sincerely,
Lindsey Schocke
Sincerely,
Lindsey Schocke
Geeks on Tap: Mission Accomplished
I think virtually everyone is now allowed a free credit report from each agency each year now. I recommend ordering one from each spread out over the year. I'm not sure if it's realistic to expect it to be updated in a month but it wouldn't hurt to pull the first one in 4-6 weeks and see where things stand and if there are any other errors. If it hasn't cleared by then, you can contest it or wait until the next one in 4 months or so and see then.
This is really wonderful news! As ugly as IRS penalties can be, I have a hard time imagining 100% penalty for 1 year so we'll keep our fingers crossed that that will cover both the overdue taxes and a good chunk of anything he owes for '05. Don't forget to remind him to start saving for next year's taxes. He might want to consider a short term CD that allows deposits during the term so that it is a little harder to get to it before tax time next year. Those self employment taxes can kill 'ya.
Peg
Wow, what a blessing that commission check was! What a nice thing for him to want to do--to pay off your car for you. Sounds like you've found yourself a very sweet guy. Congrats to both of you! :-D
Pat :-D
Great news!
All my best,
Danni
This income right now is pre-tax, unfortunately. He has decided however to use all of the money to pay off his bad accounts, ie, collections, past due taxes, whatnot in order to get up to date, and then once he's all settled up he is going to take the money and put it aside from the next checks. Like instead of putting just a little aside from a 2 thousand dollar check, he would put the whole thing into savings. We both just feel that right now, we want him to get the past due accounts squared away so he can work on rebuilding his credit and get the creditors to stop calling! And any extra money he has after paying taxes will go into a savings account for taxes as well, but at this point we don't know how much if any that will be.
I am very happy for you!!!!