Hi there, I have a total debt of around 40K of uns

Hi there, I have a total debt of around 40K of unsecured debt, stopped paying in first quarter of 2008 and haven't payed anything since. Currently dont have a job however I want a fresh start. I can get a family loan to settle all in one lump some payment.
So my question is, Does it even make sense to pay/settle my debt after more than 3 years of non-payment? Most debt have been charged-off and/or sold/transferred to other firms.
If so How should I do it? through a debt settlement firm or Do it my self? Can a company negotiate/settle for a better percentage than myself???

7 Answers

My Credit Score is already on the floor, its average 600... Im 3-4 years behind on all accounts. Only now I am able to work on my credit... So I settle all my negative accounts my Score will NOT go up immedietly? ONly with future accounts opening I can increase my Score?

Please forgive my frustration on the SAME issue however I'm really cobfused as how to fix credit for immediete or quick effect !!! ???

thanks all a million times...


Soaplady is right. Debt settlement hurt your credit score. But if you pay-off your outstanding debts, then it will definitely have a positive impact on your credit score. Try to settle your debts on your own. Look at this page:http://www.debtconsolidationcare.com/steps.html


I agree. it is very difficult to manage your money without a personal savings account. Try to remove the negative items from your credit report. Your mail goal will be to add positive info on your credit report. See, if you pay off the accounts, your score will not increase immediately. However, as you add positive info on your credit report, your score starts increasing. Future creditors will be happy to know that you have paid off the debts. 


I tried 2 banks already and both of them got a hold from the Judgment firm, few months after opening and eventually got closed with whatever balance was in them. Since than no personal accounts for me.

I guess my real issue is cleaning my credit, the judgment I will definitely settle since there is no other way besides a BK and Im not doing that... Which other issues I should solve in my credit report to increase my score???

SO I should just NOT PAY my collection accounts, (some sold to other firms) since you are saying they have absolutely no effect on my credit score.

I would like to buy a house and a car again without worrying about these creditors taking them from me, or putting Lien whatever on them.

I am truly thankful to your answers...


Paying a collection account does absolutely nothing for your credit score.

As for your BOFA business card, if you personally guarnteed it, it can show up on your personal report.

THe judgment you can probably settle.

Your bank accounts get closed due to a judgment??  Try another bank.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com/paydayloan/dealingwith-illegallenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com/statute-of-limitation.html

I am in NY, I think the SOL is 6 years here... Settling/paying a collection account will not increase my credit score???

Also wonderin how a Bank of America business credit card shows up UNPAID on my Personal report, is that LEGAL??? The 1 judgment I have is also from a HSBC business line of credit, they saying I personally guaranteed it...

I can't open any Personal Bank accounts ("because of the judgment, account gets closed in a couple of months with more(-)") and that is a BIG problem for me... It is really difficult to manage life without a personal banl-account...

Thank you very much for the response and any Help...

 


What state are you in?  If the debts are out of or nearing the SOL, why bother?  Paying a collection account will do nothing for your credit.  And DONT pay anyone to settle these debts for you...do it yourself!

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com/paydayloan/dealingwith-illegallenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com/statute-of-limitation.html

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