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Numerous Collections should I pay?


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I have numerous collection accounts, one being a voluntary foreclosure and they never go away, they get sold over and over again, it is never ending, I am just thinking I will just make payment arrangements on them all and pay them off and be done with it! What do you guys think? would it help my credit? I know my credit is crappy, so i don't know if it will help or not.

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Some thoughts:

1. A credit score is a mathematical formula intended to analyze past behavior and use that to predict the future. Lenders use the score as a tool to predict default. As you can imagine, lenders try to avoid default.

2. Paying an old debt will not make your credit "better". Since your credit score is a reflection of history, the fact that you had something negative happen will still reflect negatively. Paying does not change the history.

3. The older a negative item is, the smaller the negative impact on your score. Negative items may not be reported longer than 7 1/2 years from default. At that point they will fall off and have no impact on your score either way.

4. Paying an old debt will diminish or eliminate the risk of litigation, judgment, liens, etc. That is all it does.

5. Take a look at your state statute of limitations. If the debt is out of statue, then you have close to zero litigation risk (you can still be sued but have a defense if you handle it right). If the debt is close to being out of statute, maybe you can just lay low until it expires.

6. Don't live your life by a credit score. Everything you need (except a home) can be paid for in cash. Credit is a cancer and it serves little good.

7. The only way to build a good history is allow time to wipe out the bad stuff and begin now to make payments on time every time.

You will have to decide for yourself what is in your best interest. Good luck to you.

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