Need help planning debt repayment

Vampyre73 · #1 (**permalink**) 08-27-2010, 09:17 AM

I'm about to start (finally) on clearing up my credit report of a bunch of smaller (couple hundred $$ each) and two larger (couple thousand $$ each) debts. I am going to target one small debt each month until they're all finished, which should take about a year or so to pay off. My question is this: the two large ones are from several years ago, and according to my credit reports, are listed as "remaining on file" until later this year. Should I begin repaying these, or simply let them drop off the report? Will that even happen, or will they just be sold to another agency who will then reset the clock again?

DavidBibby · #2 (**permalink**) 08-27-2010, 09:41 AM

I had a friend who had not paid on a debt in over six years. He was quite proud of that fact, and he was waiting for it to drop off by the end of the 7th year.

About a month or two later. He was served papers because the company was suing him for the money.

He had to get a lawyer and help from family to get a repayment process in order because they wanted the money in FULL and he couldn't do it.

So my suggestion to you Vamprye, is to pay off the two smaller debts as fast as you can. Then start building a fund of cash that's about 50% of one of those larger debts... then call that company up and offer to settle with them.

Do the same with the other one.

It's possible that if you did nothing with either of the bigger debts that they COULD drop off your report. But then out of nowhere...they can resurface again and come back with a vengeance and you may be forced to take care of them.

In my opinion it's better to handle the mess now and get it over with.

Vampyre73 · #3 (**permalink**) 08-27-2010, 09:53 AM

Thanks for the advice, David. My original intent was to include them in my repayment strategy anyway, and make small payments on them while taking care of the small debts. After the small ones were clear I can just put that additional $$ towards the big ones. I just want to clear the decks and be debt-free! With a little work, that will be within the next year or two.

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