About the author

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,

    well they dont really hastle us, no collection companies calling all the time or anything, but they do send letters once in awhile offering payment plans or lump sum options. problem being that we owe to several different companies and we dont know who has added all there fees and interest, and who hasnt, as far as their payment plan options go, and there are so many, i wondered about going with a company that can consolidate all the payments into one, or a lump sum. but lump sums with the diff companies wouldnt be so hard, just add them together. with the payments i dont know what to expect with the interest. anyhow, i do belive most of them have done there damage. most are from age 18, but 1
    or 2 are from within the last 4 years. i didnt think about/know that they will take them off his credit report after 7 years. its been 6 so were getting close on that. that will help emencly if it happens. so since were not too bothered yes i beleive we can save until we have a good chunk of funds available, and deal with it then. i just want to deal with all of it at once and clear our past. ok well thanks! and i will contact you when we save up some.


  • Thanks for the fast response Steve! relaly appreciate it. good advise! we had to pay the IRS now….so will continue to do that till next year. and we are going to buy a home this year, for the tax credit as we need it on next years taxes, but our loan guy is getting us pre-approved with the debt from 6 years ago. he has looked past that and more to our income and stability of it, having the same job for 6 years.this shouldnt hurt our situation any worse as the mortgage payment is the same or LOWER than rent in most cases. especially since we are moving cities to a much more affordable one, sonoma is soo expensive and vallejo is much cheaper. and then come january we will start a savings. and when we feel we have enough in there, take the next step to pay off old debts, and also our current credit cards which are maxed out. at that point do you think we should try debt consolidation, or call them driectly and set up lump payment or monthly payments?


    • Jen,

      If they don’t hassle you till you are able to save up the funds, just wait to do a lump-sum payment. It’s just easier and whatever damage has been done by this old debt is already done.

      When you get at least 60% of the funds together to pay off that old debt come back and contact me. Let’s see what options exist then to resolve this old issue.

      Of course, after 7 years it will fall off your credit report. They could still try to collect anyway.

      Does this sound like a reasonable game plan to you?


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