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    tahoengirl's Avatar
    tahoengirl Posts: 10, Reputation: 1
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    #1

    Aug 15, 2007, 02:27 PM
    To pay or not to pay?
    My credit score is low I recently check my report to see what was still there.And most of the debt is about to come off my credit because of statue of time limitation. Should I pay what I can before it falls off? If I don't pay and it falls off how will this affect my credit score? And want to restablish my credit is getting a credit card with a secured line of credit is this good or bad? Do they report to the 3 agencies? Since it is your own money you sent in for the line of credit.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Aug 15, 2007, 04:43 PM
    Most secure cards do report your credit, "your" money is deposited into a saving account used as security on the card, but in all other matters it is still a credit card.

    If the SOL runs out, they can no longer use the courts to collect, if you start paying before the SOL runs out, this starts the SOL all over again.
    julias's Avatar
    julias Posts: 1, Reputation: 1
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    #3

    Aug 17, 2007, 02:21 PM
    Quote Originally Posted by tahoengirl
    My credit score is low I recently check my report to see what was still there.And most of the debt is about to come off my credit because of statue of time limitation. Should I pay what I can before it falls off? If I don't pay and it falls off how will this affect my credit score? And want to restablish my credit is getting a credit card with a secured line of credit is this good or bad? Do they report to the 3 agencies? Since it is your own money you sent in for the line of credit.
    If you can pay back your loans go for it, but if you can't then file for bankruptcy is theonly way out, I am speaking from exp.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #4

    Aug 17, 2007, 03:41 PM
    This is what I would do. I would setup a savings account and save as much as you can into it. When you have enough to cover 50% of your debt, contact your creditors and offer to settle for half the current balance.
    jmgackowski's Avatar
    jmgackowski Posts: 1, Reputation: 1
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    #5

    Aug 22, 2007, 09:45 AM
    Listen to Fr_Chuck. If you begin to pay on a card that you have been delinquent on for a very long time (your sol is nearing) it messes you up even more. On the other hand, I was able to pay off my long over due credit card for less than half of the debt that I owed and it has improved my credit.
    jameex's Avatar
    jameex Posts: 9, Reputation: 2
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    #6

    Aug 22, 2007, 06:22 PM
    I think that you should differentiate between the SOL and the duration of your negative items on your credit report.
    On the other hand, If you open a saving account and wait, the bad debt amount will keep rising up (interests, late fees ad other collection costs... ) and It will be probably more than what you will get as interest from your saving account, in other words, you will never reach the 50% of your balance...
    I would wait until the seven years are expired and ask the three credit bureau to update my file and remove the seven years old items from my credit report... not sure your score will go high, but at least you won't have adverse accounts on your report, the collectiuon agencies (depends on your state) have no right to sue you if the duration from the moment the account was charged off by the credtor, to today, is more than the SOL of your state, however they can attempt to collect the money until you die... I have seen a very instructive answer to your question and I think It's worth to click on the link below
    Read echo's answer, she's really good
    Yahoo! Answers - I have several delinquent accounts on my credit report that are about to drop off.?
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