Do I need to pay a debt if it will drop from my credit report in 2010?
2003 was a bad year. I accrued several thousand dollars in unpaid debts. Mostly between 2 credit cards and some charged off accounts. It’s not much in comparison to some and it is only a slight inconvenience because I don’t currently have or want a credit card. According to my credit report most of these will drop by mid 2010. My question is, will it really be removed from my credit or do I need to pay it for it to be removed when they say it will? How long am I liable for a debt?
People, there is no need to get nasty. I am asking from an informational standpoint because I had read other posts concerning statutes of limitations. Also because I didn’t fully understand why a credit report would say that a debt was “scheduled to be reported” until a certain time even though it hadn’t yet been paid. I know I owe what I owe and at least I’m not one of those people who goes thru life building ten of thousands in debt and then filing for bankruptcy to clear it. were talking about a little over $2000 total debt in my entire life. Get a grip on yourselves
you are liable for debts until you pay them or until you declare bankruptcy THAT IS IT, even if you die your next of kin will be left with your debts. YOU CANNOT WAIT OUT A DEBT, man if i could do that i would go and buy a ferrari and just wait until i didnt have to worry about it.
if you really dont think you will ever be able to afford to pay it off you could declare bankruptcy, but then you wouldnt be able to get any credits or loans for 7 years.
A debt must always be paid to drop from your report! You’re really hurting your credit rating if you’re not paying it back in a timely, monthly manner. You can be held liable for a debt all your life… if you die with an outstanding debt, your relatives can be forced to pay it out of your life insurance/inheritance/their own funds.
You need to pay it because you owe it. The heck with your credit report, have you no self respect?
You owe the money! When you charge anything you are borrowing money from the credit card company and you owe it until it is paid. Even if the credit reporting companies shold drop it from your credit report, you borrowed and still owe the mioney. There is no statute of limitations on a debt. To not pay is the same as to steal!
file for bankruptcy
Im sure NONE of these people have ever had a debt before…
Anyway, just because a credit bureau says it is scheduled to be dropped from your report, it might not be….they dont usually stay on top of those things…so I wouldnt COUNT on it, but it might happen.
I do know that if you go off and pay it now, it means you are validating the debt, saying its really yours, and it COULD stay on there even longer. The statute of limitations could start at the time you pay it off.
However, if you want to try, you could contact the collection agency where your debt is, and settle with them. They purchase a debt from whoever you didnt pay originally, for a fraction of what you owe. You owe $2000, they probably bought the debt from them for $200. Now they’re working on you to pay the $2000, so they make $1800. A lot of times they’ll SETTLE with you, talk to them and say you can make a lump sum one time payment of $1000…they’ll take it, trust me. But before you pay them, tell them you’ll only pay it if they’ll report to the credit bureaus that the debt is in good standing. They just may take that deal, take your money, and they’ll report to the bureaus that you are not in debt to them, and that you were never late on payments, etc. The bureaus will CORRECT the information, and make it so your report looks like you have paid on time, and boosting your score…of course, get EVERYTHING in writing before you pay them.
I would try that method, or if your credit score isnt hindering you, I’d just wait it out. Save a copy of your report where it says when its scheduled to drop off, and send them copies of it, if it doesnt happen.
Understand, that even if it is set to “drop off” in 2 years, if it is not paid off and they don’t want to write it off they will report it again to the credit agencies.
I understand you had a “bad” year and it might make a “small” dent in your credit score, but do the right thing and pay it off. Most of them will offer you a “lower” amount, but make sure you get that offer in writing first and that you make sure that “interest” isn’t compounding everyday on it.
Wow, you received some TERRIBLE answers here. Looks like it’s time to educate everyone again.
Ok, first off you need to understand there are two timelines you need to be concerned about. First is the 7 year reporting period covered under the Fair Credit Reporting Act. The 7 years starts at the date of first delinquency and CANNOT be LEGALLY reset under ANY circumstances. Whether or not the debt is paid has zero bearing on the 7 year reporting period.
Next, is the statue of limitations, which is the length of time you have a legal obligation to repay a debt. This varies from state to state and the type of debt, but is generally 3-6 years. Once the SOL is up, you have an affirmative defense in case they file suit against you. Unlike the 7 year reporting period, the SOL can be reset by making a payment on the account.
This link below has some great information on the subject, plus it has a link to the SOL page for each state.
Crazyjester is right on the money. Just let it fall off because if you pay it will not increase your credit rating. If you have a savings account, you can always put that up for collateral if you want to increase your credit rating in the future.
Crazyjester is absolutely correct!
The previous 7 posters obviously never bothered to educate themselves.
Derogatory accounts will be reported for 7 yrs from the date of delinquency that led to the charge off or collection activity.
There’s nothing that can reset the reporting period; not paying it or having the debt sold to other collection agencies.
The statute of limitations is how long a creditor has to seek legal remedy. If the debt has passed the SOL and they try to sue, at least you’ll have a defense.
It will drop off paid or not..there is a statue of Limitations too of when they can come after you, e very state is different..If you pay anything at all you reset the statue. I am not saying dont pay it I am just saying, it will come off your credit report no matter what