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Paying off a delinquent credit card

27 April 2010 1,183 views 25 Comments

Do you have Credit card that has been in collection status for more than 4 years? If so you might want to think about negotiating a settlement with the holder of that account. Most states have a SOL Statute of limitations on how long you can be sued for such a debt, but it doesnt seem to be stopping attorneys from filing suit, regaurdless of the time limit. It can be time consuming to fight off one of these debt companies, and your time could be better spent doing something more productive. If the creditcard company knows that your going to fight such an action, they may be willing to settle for far less than what is owed.

The bad debt can legaly tarnish your credit for a total of 7 years at whitch time it will fall off of your credit report, however until that account shows paid or settled in full. there is no way to obtain new credit. here are some free tips on how to remove a collection account from your credit report

1- Dispute in writing to all the credit reporting agencies that are reporting it
there are 3 major agencies Equifax, Trans Union and Experian. You can get a free report once yearly at http://www.anualcreditreport.com

2-write the company and tell them that you are disputing the debt and let them know that you are willing to settle for xxx.xx eventhough you feel you dont owe this. let them know you are willing to fight it and look up case laws that will back up your defense. they should be happy with somthing rather than nothing, but some would rather not collect anything.

3-let them know your broke, but your roomate whom you rent from is willing to loan you $300 if you agree to pay off a debt.
4-If a settlement is reached get it in writing. have them fax an agreement stating the facts. Do this before sending any money. If they send you the agreement and you western union the money keep your reciept and the agreement this is your proof to have it removed from your credit report.

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