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Paying Off Debt In Collections. – Tom

I must admit–I was reckless and immature when it came to credit card spending. I was living out of my means through credit cards. By 19 years old I had 15 credit cards and more than $20k in credit card debts. When I turned 20 I couldn’t keep up with the payments and it all went to collections. Now I am 24 years old and I want to rebuild my credit so I can advance in my career. I recently check my credit report it shows that the 15 credit cards are charged off and sold to another lender. Also negative are collections accts for those credit cards. My score is probably zero.

Should I pay the debt in collections? Some of these collection accounts will be off the record in 2015 (according to experian). Will my credit score start to improve by paying the collections off now? Or Even with paying off the debts my score will not improve until the collections acct are removed from my credit report? Thanks!

Tom

It’s time to put debt behind you and start dreaming about your life after debt. – Click to Tweet

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Steve Rhode

    Doyle,

    I welcome your comments to help others but posting your telephone number or contact information makes it look like you are trolling for business. Please don’t do that again or I’ll have to block you.

    Steve

  • Doyle Brueckner

    It depends upon your goals and your present situation. It is true that you could probably walk away at this point and eventually your credit would slowly restore itself. However, outside of declaring bankruptcy, debt you owe never actually goes away. And these accounts could very well pop up in the future, even after they have fallen off your credit report and are past the statute of limitations.

    So, if you want to take care of your situation once and for all and you are making enough money to deal with the debt now, I would recommend that you settle out these account one at a time. The truth is that it really won’t take a lot of money to settle these old accounts. You will also feel much better knowing that you cleaned up the mess and don’t have to worry about any future implications.

    You are welcome to call me if you need any help. My number is 970-946-6942.

  • Doyle Brueckner

    It depends upon your goals and your present situation. It is true that you could probably walk away at this point and eventually your credit would slowly restore itself. However, outside of declaring bankruptcy, debt you owe never actually goes away. And these accounts could very well pop up in the future, even after they have fallen off your credit report and are past the statute of limitations. So, if you want to take care of your situation once and for all and you are making enough money to deal with the debt now, I would recommend that you settle out these account one at a time. The truth is that it really won’t take a lot of money to settle these old accounts. You will also feel much better knowing that you cleaned up the mess and don’t have to worry about any future implications.You are welcome to call me if you need any help. My number is XXXXXX.

    • http://GetOutOfDebt.org Steve Rhode

      Doyle,

      I welcome your comments to help others but posting your telephone number or contact information makes it look like you are trolling for business. Please don’t do that again or I’ll have to block you.

      Steve

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