Okay so I was a full-time student and ran into some financial problems and my credit suffered and needless to say I didn't really care at the time, my focus was on receiving my degree. Now I realized that it has hurt me a great deal and I have about 5 old charge-off's, my question is " If I pay these credit cards now, will it actually help my credit be regained? " and if so do you think it would be worth paying $5000 on old debt or should I pocket the money and take a vacation??
2006-07-31 15:45:58 · 11 answers · asked by nurse_dez 1 in Business & Finance ➔ Credit
If you pay these off without requesting a pay for delete, you will only trade an unpaid negative to a paid negative. Which isn't much better.
You should find out what the statute of limitations (SOL) is for your state. If you are out of SOL you are not legally bound to pay. If you are out of SOL and do not want to pay, send a debt validation letter then a SOL letter.
If you are still in SOL or if you want to pay, first send a debt validation letter, then a pay for delete letter.
With both of those instances, you should also dispute with the credit bureaus.
You might check out the free site I've listed. Do some reading in the newbie forum and then in the credit forum. You will be able to find your states SOL, learn your rights and information on how to deal with collection agencys and credit bureaus.
2006-07-31 18:23:07 · answer #1 · answered by echo 7 · 0⤊ 0⤋
As a loan officer, I get asked this a lot. There's a short and long term answer. Long term, you do want to pay them off because it does create a drag on your credit score by lessening the impact of all the good stuff you will now be doing (like paying things on time.)
The short answer is, once something has been charged off, your score has already taken a hit. IF you are in the process of applying for a mortgage or car loan, or will be soon, paying off accounts more than two years old can actually hurt your scores because it may "re-age" the account and treat the recent payoff activity as a trigger for more damage. So, it's all about timing.
Paying off collections or ailing accounts BEFORE they get to chargeoff status is best. If you have to choose, feed the ones that are still alive and bring them current first. Then go after the older stuff.
2006-07-31 22:54:33 · answer #2 · answered by doublek 2 · 1⤊ 0⤋
A vacation sounds like more fun than paying off all debts, but think you should pay off the old debts. It would show maturity on your part and help regain a good credit rating.
2006-07-31 22:50:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
honestly, i have gone through the same thing. Go to equifax. com and order a copy of your credit history which will cost you like 15 bones, if the debts on your credit card still show, than i suggest you pay em off, however, if they do not show, have a good time in your vacation
2006-07-31 22:50:57 · answer #4 · answered by Rudy S 1 · 0⤊ 0⤋
I would only pay them off if you in return are going to be recieving a "Letter Of Deletion. But get the letter FIRST that they intend to erase it from your credit if you pay. It does work....!! But some collectors can be jerks so just try to negotiate and see whats happens. ....Never imply that you are offering to pay the debt though. This will reinstate the Statue of Limitations for collections. Say that you wish to negotiate paying it for a letter of deletion.
2006-08-01 04:07:07 · answer #5 · answered by Joe M 1 · 0⤊ 0⤋
Once they are charge offs, there is not much you can do to get them to be positives on your credit. That said, you can negotiate the debt down with whoever bought it and then pay it off. Be an adult, don't walk away from your debt.
2006-07-31 22:51:06 · answer #6 · answered by Steve R 3 · 0⤊ 0⤋
Don't be a fool, pay off those debts. It will do wonders for your credit. Pay down those credit cards. You don't want to be in debt forever.
2006-07-31 22:49:03 · answer #7 · answered by Josh 4 · 0⤊ 0⤋
pay it off and keep a letter saying that it is paid (when u apply for credit). it will stay on ur credit report for 7 yrs but if it shows paid versus not-- will help a lot better in the long run!
2006-07-31 23:34:34 · answer #8 · answered by KISH KISH 2 · 0⤊ 0⤋
Don't file bankruptcy whatever you do! That will only make things worse. I would go with paying it off if you're still being harrassed about the money. Otherwise, they'll fall off in 2 years.
2006-07-31 22:55:35 · answer #9 · answered by wildstar_2 6 · 0⤊ 0⤋
Be a responsible person in life or society. You owed that debt,you have obligation to pay it off. They may settle for small amount. you call them up saying :"look I try to do the right thing by settle it" would you settle this amount and if you accept it, please give me the paper.
One thing, if you do it, try to send certitied mail to obtain the proof
2006-08-01 02:17:35 · answer #10 · answered by Hoa N 6 · 0⤊ 0⤋