In repairing credit: Should I pay off charge off items or will this even help my

Tips and Deals Forums Consumer Credit Credit Repair In repairing credit: Should I pay off charge off items or will this even help my

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    • #205161

      score.? Should i called these companies myself and work out a deal to try to pay half of my balance, or should i hire a service.

    • #266525

      I am going through the same thing, except I’m getting to my debts while in collection or before they go to collection. You should send a letter as stated in the previous response AND when you send the letter include that you would like to have the debt removed from your credit report so that it won’t affect your credit score any longer. Also include in the letter some where that they agree not to file a 1099 c form against you so that you won’t have to claim it on your income tax and have to pay the unpaid balance of your settlement to the IRS. If you would like to get a better understanding of this Google “Pay to Delete sample letters” and you will get many sample letters of what to write. I hope this helps you out.

    • #268484

      Don’t make the mistake of simply cutting a check to whatever collection agency has the debt for the charge-off and assume that your credit rating will be magically restored…Doing so will not remove it from your credit reports. It will simply be updated to a “Paid Charge-Off,” which, while slightly better, is still a seriously derogatory item. Per the Fair Credit Reporting Act, a charge-off, whether paid or not, can remain on a consumer’s credit reports for up to seven years.

      You could be stirring up a hornet’s nest by renewing contact with debt collectors over old, charged-off debt. You could trigger very aggressive collection activity against yourself….Making a payment on charged-off debt can reset the statute of limitations in most states…this would enable the collectors to take legal action against you for the debt. I personally do not think that a slight increase in your credit rating is worth the risk of a lawsuit/judgement.

      If you’re going to pay off old-charged-off debt anyway, then you might as well negotiate the lowest settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report anyway. You don’t have to hire anyone to do this for you. You have to be VERY careful in this effort…Mail them a vaguely worded statement like:

      I am willing to settle this matter for 25% of the original amount. This is in no way an admission of this debt, but rather an attempt to settle this matter. Your firm must send me a written agreement on your company’s letterhead that you will accept this amount as “payment in full” and that is issue will be settled. Upon receipt of this agreement, I will mail you a money order for this amount.

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