TSorad

Small Inheritance, Paying off Bills

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Hi every one,

I need some help/advice about my past due charged off bills. I just received a small lump sum cash of 25k and trying to be smart with it. I have about (guess) 10k in cc debt (10 cards) that are all charged off since around 08/09. I really had no plans to pay this, didn't have the money and it will fall off my report,(don't need to buy anything on credit) but now with the money I am considering it. I still don't want to, but I do owe the money. Esp now with all the collection fees the amount has ballooned so I'm just not sure. I also have student loans in default that I am working on getting consolidated as well. So even with the paid cc debt as paid settlements, my credit will still not be good.

So my question is, is it worth to pay it off or just let it fall off? I know my credit won't be much better and it is a lot of money. I don't have any judgements or I don't think I'm getting sued as far as I know.

This happened when I was younger, had some credit card debt and didn't pay it and it just fell off. I thought I learned my lesson but I got over my head with new cards.

Any tips/advice would be appreciated, this site helped me when I was younger to dispute things off my report. I can provide more information if that would be helpful

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For $10k in debt that is charged off, the OC might try to re-age the debt. You could negotiate to pay that off for pennies on the dollar. See if you can settle the debt for around $2k, unless the SOL has run out. Still the debt will be on you CR for the next 5 plus years.

Take the other $23k and invest it for the future. If you are smart with it, in the next 7 years, should be close to double.

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Hi every one,

I need some help/advice about my past due charged off bills. I just received a small lump sum cash of 25k and trying to be smart with it. I have about (guess) 10k in cc debt (10 cards) that are all charged off since around 08/09. I really had no plans to pay this, didn't have the money and it will fall off my report,(don't need to buy anything on credit) but now with the money I am considering it. I still don't want to, but I do owe the money. Esp now with all the collection fees the amount has ballooned so I'm just not sure. I also have student loans in default that I am working on getting consolidated as well. So even with the paid cc debt as paid settlements, my credit will still not be good.

So my question is, is it worth to pay it off or just let it fall off? I know my credit won't be much better and it is a lot of money. I don't have any judgements or I don't think I'm getting sued as far as I know.

This happened when I was younger, had some credit card debt and didn't pay it and it just fell off. I thought I learned my lesson but I got over my head with new cards.

Any tips/advice would be appreciated, this site helped me when I was younger to dispute things off my report. I can provide more information if that would be helpful

When will they fall off?

7 to 7 1/2 years from your default and charge off was only 2 years ago?

What about being sued?

No guarantee that wont happen.

If you need to buy a car, short of paying cash, now with that inheritance, you need a good credit report.

I would try to offer to settle for less.

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"What about being sued?"

Bingo!

It's not even been two years since they were charged off. $10K is a lot of money for them to just walk away from and let just fall off of your reports. I doubt very seriously this will happen. In fact I am betting sometime in the next year you will be served and you will end up in court on that credit card debt.

What I would do first if it were me would be to contact them and offer them a settlement at about 25% and ask for deletion (Doesn't hurt to ask.. and who knows.. they may even go for it!). If they refuse that offer I would up the next offers by 10-15%.

DO NOT TELL them you received any inheritance. You need to present yourself as broke and desperate to come up with even 25%. If you decide to try and do this over the phone (I wouldn't recommend it) make sure you get everything in writing before you pay. I would attempt everything through certified mail.

There's a really good chance they won't delete the charge off's from your reports at a reduced or even full amount. But do your best to try and negotiate that into the terms.

This should help you avoid getting sued and help you keep any judgement's off of your record.

With all that said. This is just my advice and what I would do in your situation. There are other certainly other options available to you and sitting around and doing nothing and waiting to see if they just go away is one of them.

Good luck.

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