Hello! I screwed my credit up royally back in 2000, and still trying to recover. In the 90's, I made (for me) very good money. My expenses were low, no debt, life was good. Fast forward to a few job layoffs, some car and medical problems, a few long term stints on unemployment, and my debt increases and my credit sunk. At the time I was very active on the MotleyFool.com boards, and learned a lot. I called both credit card companies for the 3 cards I held, and armed with my newly acquired information I proceeded to try to negotiate with them. Capital One was great - for both of the cards I had with them, we worked out a payment plan I could stick to, and they reduced the interest rate (I think, don't remember exactly) and I know they took off lots of the fees and late charges. They were willing to work WITH me, and now today those cards are both in good standing. I use them and pay them off regularly, and one of them even got a credit line increase this spring - I guess as a reward for being good. The third card - Providian - would NOT work with me at all. So after many go-arounds, I decided to send the $20 month I had to another creditor who WOULD work with me, and let that one go to collection. My reasoning was, was that the CA would probably work with me. Well, they didn't either. They were extrememly rude and difficult. I was having a lot of things going on in my life at that point, and I finally just put it aside because I bigger fish to fry. Over the years, I've tried from time to time to contact them and pay them, but they always want much more than I can pay monthly. I am making okay money finally, but not much extra as I'm still paying payments to dentist, friends who loaned me money, doctors, etc.. At this point I believe that they would take .50 cents (or less) on the dollar. The original amount was somewhere around $5k, and it's up in the $7k range now which makes me feel ill, I swear... But I can't give them what I don't have. It's a shame, because all of my other creditors are in good standing, and this one account has destroyed my credit - with an open collection as old as this, I wouldn't be surprised if my FICO was below 500 at this point... I thought about going the Credit Repair route - using one of those companies to re-negotiate for me, but I dunno. Is there any way to stop the exhorbitant fees? Because with the small amount that I could pay, it doesn't even come close to what they're probably tacking on per month. (Not that you'd know, as there's no monthly statement of course.) OR, My other option, is that I may be coming into a few thousand bucks somewhere between Jan - March. It looks like about a 80% - 90% chance. If I get a lump sum of $2,000, I'd call them and try to negotiate a settlement. I am thinking that it's been open THIS long, what's another few months of waiting? If I start working with one of those companies, then does that negate my option of going the settlement route? Any insignts you all could provide would be appreciated! Now that my life is somewhat smoothed out from stuff that was going on back in 2000 - 2003, I really do need to get this straightened out. Thanks!
I would first get all your credit reports and see what is reporting and what is not. Work on the ones that are reporting and find inaccuracies to dispute. Also, if these accounts are from 2000, they are close to or already out of SOL. They might have already dropped off your reports. Make sure you understand your consumer rights in disputing and validating debts before you start the process. Ask a lot of questions along the way. Good luck.
If the default was in 2000, the reporting period on your CR is 7 years, and depending on your state the debt may be time-barred due to SOL. If you start payments, you restart the clock on debt. So another option is to do nothing and let it go away.
I would say don't even bother trying to pay the CA. You are almost out of the woods as far as the SOL goes (I think, not sure since no dates of last payment were given). You HAVE tried to work with them in good faith and that is more than many people do. Besides it's not your fault they are being greedy and won't work with you, so why should you have to pay for your good intentions/actions with possibly more damning items on your report? With an account as old as you mention, you may want to check your FICO scores.....my guess is that they are not as bad as you fear! They lose potency the older they are, unless you have given the CA money recently.
