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, and is a regular contributor to several personal finance websites.
