Pay off collection or not?

Question

I have thousand of dollars from multiple credit card debts that are in collection since 2002. Most are charged off but some still lingers. I now have a good income and would like to pay off my debts; however, I read that if I do, the debts would stay on my credit report for 7 years from the initiation of payment. Hence, if I do nothing, then they would disappear in 2 years, while paying the debts would make them stay for 7 more years. I also have a court judgment against one account. Does this expires in 7 years or not? Ought I use my money elsewhere?

Answer 1

if you want to do the morally right thing, go ahead and pay all of them. If you want to actually help yourself and your credit, forget what half the people are saying and leave them be if theyre about to fall off in 2 yrs. One "mortgage" person said pay them because they look at that, HELLO, they cant look at it if it isnt there anymore. If you are in desperate need of some credit and your credit is horrible right now, pay them on the condition that they will put it in writing that they will remove the negative entry from your report completely. If they will not, leave it alone, it'll dissapear on its own soon enough. Someone said legally, theyre not supposed to do it, but it is legal for them to do it, its simply at their own descretion.

Moving on, if you pay them, and they do not remove it from your credit, you are restarting that 7 yr cycle, and it will be on there another 7 yrs that you didnt pay someone what you owed them for 5 yrs. and it will simply say that the balance was paid. Also, if you settle for a lower balance, it will restart the cycle and it will hurt your credit score because it will state tht you didnt pay someone the full balance.
Accout charged off to collections but paid in full after 5 yrs is not in any way better than what it is now, possibly even worse.
Debt that was owed five yrs ago is just about completely overlooked by most lenders, especially mortgages and auto loans.
It is legal for them to sell the collection to another collection company, but it is completely illegal for them to put it on your report if the 7 yrs is up, and in some states, you are entitled to money, about $2500 if they try to report it again
My advice to you is to leave it alone, and let it fall off it 2 yrs as paying it without them removing it will be much worse. Get a credit card or two if you dont already have one and pay it in full every month and never spend more than about 30% of the balance. Right now, if you wanted to, you could probably get an auto loan by yourself for a cheap car, but i would make sure i had those credit cards for about 6 months before i did that.
Hope this helps and gl

Answer 2

I understand how you feel about your old debts. Personally, I feel you are always responsible for what you did in your past. From my understanding in speaking with others in the industry where your credit rating counts (i.e., your are trying to buy a home), your credit score is huge and if you try to pay off old debts that have not been reviewed recently by the creditor trying to collect it, you should wait to pay it until after you have purchased the said home. If you have been hit by the creditor, pya it off ASAP --it does affect your score. Otherwise, buy the home and then pay it off. If your are thinking about buying a home in the next few years, pay off as much as possible right away so that it allows your score to rebuild. That way, when you are ready to buy that dream home, your score will be higher (so long as you continue to pay your debts on time and do not allow any to fall back into collections) and your credit report will show your past debts paid. As to the judgement, I'm not too sure how that works. Good luck though and best wishes!!!

Answer 3

Well we should all try to make good on our obligations - but consider this, collection accounts on credit reports last only 7 years before they are deleted from your file. However this does not prevent further collection efforts - the statute of limitations per state only limit the amount of time a debt collector is allowed to file suit against you. Collections can be indefinate, but 99% of the collection agencies see no reason to persue if the legal avenue is exhausted. If you make a payment and not payment in full while your account is reported/or not to a credit bureau - it will renew the statutes from that point on - including the ability to file suit in some states. In other words - either pay them in full or dont pay them at all.

Answer 4

You've been misinformed. It is highly illegeal for creditors to re-age a debt. Your collections are supposed to fall off 7 years from the date of last delinquency. If you have the money, go ahead and pay them off. They will still fall off in two years.
Your judgment, on the other hand...NO. It will not just fall off. Depending on the state in which you reside, some judgments will not fall off until 7 years after the date that it was paid or it will not fall off until the SOL is over. Usually, whichever date is longer wins.
Good luck!

Answer 5

You need to pay it off. It will show on your credit report for the next 7 years as paid in full. Believe me, I manage over 800 mortgage branches and we do look and take into consideration if a debt/collections has been paid or not. Lender's will not want to lend if they see a pattern.
Good Luck!

Answer 6

Credit agencies stores information from credit grantors and public records, including bankruptcies, judgments and liens. Missed payments and most public record items remain on the credit report for seven years, with the exception of Chapter 7, 11 and 12 bankruptcies, which remain for 10 years, and unpaid tax liens, which remain for up to 15 years.


If you make a payment on them, they will stay on your credit report for 7 more years. So if you don't want to pay them off totally, then don't make any payment at all.

The judgement will fall off your credit report after 7 years, but they will be able to still come after you on it until the statute of limitations runs out.

Answer 7

Pay the debts. They won't go away EVER. If you owe the money, you owe the money, and by not paying it ASAP, you run the risk of them being sold to another collection agency and making it worse. At least by paying it off now, it'll show as a paid debt for the next 7 years.

Answer 8

The judgmet can be renewed indefinalty, so that would be my first conquest. Get rid of it before they try to garnish your wages or bank account.

Second, offer a setlement in exchange for the credit card compaines to remove the account form your credit. Some will some wont and legally they are not supposed to do it.

Answer 9

if u decide to pay off the debts, do everything in writing. i mean everything. collectors have a habit of "forgetting" that a debt was paid off and they may try to re-collect.

get the book Total money make over by dave ramsey it will help u straighten ur finances

Answer 10

You need to turn around your life. Pay off the debts to start a clean slate. You spent the money so you owe it! Grow and be responsible for your debts.