I have about $8,000 of unpaid College Debt and about $3,000 of other written off debt from credit cards used in College. I have not paid on these debts for over 10 years and they have been sold over and over to collectors.

I have recently inherited about $50,000 in cash from a deceased parent's estate.

I want to become debt free and fix my credit rating to eventually purchase a home and start my life back on track. Where do I turn to first? Do I simply call those new collectors and say the check is in the mail? Or should I contact the original owners of the debt? I want to do this in a way where I can build my credit back up without more harm or delayed results. I would love to buy a home in a year and what will make my credit score go back up?

Should I find a Debt Assistance organization in my city and work with them? Can they get a better deal with my collectors?

Any suggestions appreciated...

Chris

Read this post first:
https://www.askmehelpdesk.com/bankru...yi-105295.html

Now if you are going to pay these accounts, call the last collectors who had it, tell the SOL has expired and that you would be willing to pay at a reduced rate, but get it in writing.

I would negotiate to pay the actual balance (at the time of write off) without interest and penalities with the current creditors. Do NOT tell them about your inheritance, simply tell them your situation has changed and you can now pay in full, the amounts owed at the time of write off. Ask them to provide the amount with an acknowledgement that it will be accepted to pay the debt in full.

Make sure that you negotiate your credit rating! They do have power over how the paid off debt is reported to the Credit Reporting Agencies, and it will affect your credit big time! Here is the web site where I got this info: Settling your debts, Part 2: Negotiating your credit rating

And also some interesting reading for you before you contact them:
Settling your debts

I agree to get everything in writing, and anything you send them, make sure you send it certified mail/return receipt requested. If you do happen to HAVE to speak with them on the phone, tape record it. Make sure you tell the person that you are taping the conversation for your records, make them state the date, time and their name and employee ID# and their supervisor's name, as the turnover rate in those places can be pretty darn quick, and the supervisor's name may be easier to track down if necessary.

My question, though, is that if the SOL has expired, why would you pay the debt at all? I thought they could not collect at all on a debt that has surpassed the SOL. True or not?