I own my house and am current and have never been late with payments . I have a fairly new car that should not require replacement any time soon. I have some accounts that are charged off and some open accounts. My job is stable and extra cash flow is great. I'm paying off about 1k per month. Although I know its wrong, I was thinking I should just stop paying and put the money into savings, since I won't need credit in the near future. My score is horible right now anyway. I could really stock some good savings away and I wouldn't miss the cash flow since it is already going to cc's. I have one card with a pretty high limit that I could keep open and it is currently in good standing.
2007-03-24 13:23:33 · 5 answers · asked by whoKnows1212 1 in Business & Finance ➔ Credit
Could they really contact my employeer and garnish wages? State -CT
2007-03-24 13:49:45 · update #1
Yes, garnishment is allowed in your state.
As for paying, like others said - it's up to you.
If you are past the collecting SOL for credit cards in your state on the charge off's, there isn't much that they can "legally" do. But collection agencies have been known to file suit on time barred debts.
SOL for collecting in your state is 3 years. (as long as you did not sign an agreement with the original creditor for the credit card - 6 years if you did)
SOL for collecting on judgments is 20/25 years. (hope your car is a good one)
Before paying a collection agency a person should always send a debt validation request first. Make sure the amount that the collection agency is trying to collect is the correct amount and that the collection agency has a legal right to collect.
You can always request to pay a portion of the debt as payment in full and that they will delete anything they have placed on your reports after payment.
If they agree, that should knock down the amount you owe on the charge offs.
As for your other accounts that you say you have, you didn't mention if they are in good standing or not. Just that you don't want to pay.
If they are still with the original creditor you should do what it takes to bring those accounts back into good standing, or to continue paying on them if they already are in good standing.
More than likely, if those accounts are in good standing, or just have a few dings, and you stop paying, those creditors will probably be quicker to sue since you have already established a bad credit history, you have a job and, depending on your state exemption statutes, you have a home that they might be able to place a lien on.
You may find that the "one" card you want to keep may not want you. If they see your credit rating quickly going downhill, they may rate jack you, credit limit decrease you, or just close the account.
Your home and vehicle insurance rates may raise as your credit lowers.
If you have to or want to find another job, you may have difficulty as many more employers are depending on credit ratings on future employees.
If you plan on socking the money away instead of paying your debts, you should put it in a coffee can and bury it - no I'm not trying to be flip. Collectors have been known to grab bank accounts before even filing a suit.
2007-03-24 17:35:37 · answer #1 · answered by echo 7 · 1⤊ 0⤋
Well in my case it was the opposite I stop paying and ignored all the bills and threats for a year or two saved the money. Then since I wanted to purchase a house I had to pull my credit got intact with who ever had my accounts (some were charged of or sold to others companies for pennies on the dollar) Anyways just negotiate a one time payment usually anywhere from 20-50% of the balance. Get a letter from them showing payed - submit to credit agencies some of the collectors updated that status too with the credit reporting agencies and bam your back on track. Please note it will stay on your report for 7 years that you defaulted or had charge offs but it also will show if you repayed or cleared all those past accounts. So in less than tree years I went from close to 40k in credit card debt to negotiating and spending less than 17K and I built my score back up to about 690 before purchasing a new house.
2007-03-24 13:58:56 · answer #2 · answered by Iramo 2 · 0⤊ 0⤋
You "think" you won't need credit. First off, it's your debt and yes you should pay it off. Why would you want that hanging around your neck for the rest of your life? Just pay them off and then think of how much more you can put to savings....This is also a HUGE character issue. If you don't pay your credit cards they will garnish your wages which could cause you to lose your job. It's not worth. Just pay it off and be done with it.
2007-03-25 16:41:59 · answer #3 · answered by beth102965 1 · 0⤊ 0⤋
i am right there with ya pal...
...bottom line...for me...is ...i am a true believer of paying my debts off....
..not only will i honestly feel the benefits from the credit standpoint...i will certainly feel the worthiness of being able to pay off what I have been loaned.
...if you have the means to pay your debts ....do....
....now is not the time to start "Good Habits"
..nevertheless...i am in the same situation....and if you have to ask this question...you are hoping someone says......YEAH start over...save the money....
Bottom line........you choose!
good luck friend
2007-03-24 13:32:38 · answer #4 · answered by hmmm123 3 · 0⤊ 0⤋
your in the same boat i am in.. and i have been wondering the same thing.. i just keep paying those cc's and they keep going up.. all those darn fees.. i thought about bankrupty and bill consildation .. trouble is they may garnish your wages.. and what if you need the credit in the feature.. it will be harder to build it back up
2007-03-24 13:35:28 · answer #5 · answered by ? 5 · 0⤊ 0⤋