Negotiating old debt may or may not help your credit score.
I have a lot of old debt that was accumulated while "wooing" someone who walked out on me. I know, I know, no excuse and it isn't, just is what it is. After that I wasn't working, couldn't pay the bills from the lifestyle so just "let them go".
Now I have all of this junk on my credit history.
Prior to that time in my life, I had perfect credit. PERFECT. I started to strictly pay cash for everything. Ended up refinancing my house with (what I found out later was) a shady company and got royally scr*wed there.... It was one of those wonderful ARM things. A couple years later I went to get a car loan for a new vehicle and found out that there were all of these credit card accounts on my credit that I did not sign up for (I was never one to monitor my credit). Finally did get a car loan, with a nearly 20% interest rate, and that was for a used car! So now, I make pretty good money and really want to get my credit back to a good place. So that it DOES reflect my responsibility, but I need some help.
When will old debt drop off my credit score? Can I negotiate the old debt? The original creditors wont talk to me. Can you help?
—Lisa
It is great that you are bouncing back from both personal and financial setbacks. I want to help you understand what you are up against with your credit score and how you will be negotiating old debt with collection agencies (if you go that direction).
I have questions about your situation that, once answered, would provide me a better opportunity to answer yours.
- From the detail provided, you may have been a victim of identity theft. Have you taken any steps to report this?
- How long has it been since payments were made on the old debt you know are yours?
Negotiating old debt to increase your credit score.
Old debt means negative trade lines on your credit report that remain for 7.5 years from the date of last activity (last payment made). You may have multiple negative entries for the same account.
Depending on how long it has been since you made a payment on these debts, you may be past the time limitation for the creditor/debt buyer to file suit in order to collect on old debt, or you may be approaching that time and these same debts are ripe for filing a suit.
CRN can assist you in working out arrangements with the collectors. First, we will want to establish that it makes sense to do so, given your stated goals and ability to fund the deals we would bring to you.
You can post additional information and answer my questions in the comment section below. I will be able to assist further from there. Anyone with concerns for how settling old debts with debt collectors will impact their credit reports and credit scores is welcome to post in the comments for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Hey there,
It has been eons, years since payments were made on those accounts. I know the amounts owed are now super inflated because of late fee on top of no pay fee on top of interest fee, etc fee. I know there are multiple entries on my credit report for the same account because the accounts have been sold from this collection agency to that one, and so on.
As for reporting the cards that I did not take out….I know who did it and, well, to be honest with you, I just don’t want to dredge that person up in my life again, so I am willing to just eat that if I must to keep them “outta here”. I did try making some payments on them when I found out about them, but my money situation just wouldn’t allow me to continue, so I stopped….that plus anger towards the person (the ex). There is very bad history with this person (the same one from the first go round of credit go-go), so I am set on trying to get them totally out of the picture now. By paying those cards off, and not doing anything “legal”, that is fine with me. I am willing to pay for my peace of mind. I know that may sound really weak, and maybe it is, but it is what it is and I am working on it.
Right now, I have a decent job, make fairly decent money and would love to get out of this nightmare. I hate the fact that I am a responsible person, nearly 50 years old, yet I can’t even get work done on my home because my credit report is so bad. What I really want to do is move from this money pit that I am living in, but I know I can’t get a loan to do so, or if I could, it would have to be one like the last one, an ARM with a gawdawful interest rate.
thanks for your help!
Lisa
Hi Lisa,
Thanks for the additional detail.
If your goal is to handle the old debt through settlement, and you are past the limitation the collectors have for legitimately using the courts to collect, you are in the drivers seat.
At this point I would encourage you to click the “consult” tab at the top of this page then fill in and submit the form. A CRN specialist will set up a consult time that can work with your schedule. You will be able to discuss the details and determine your next best step.
Best,
Michael