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Dundun2

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I have a couple old closed debts. I have substantial income now, should I pay the 2 $1500 debts?
I owe about $3000 total from 4 years ago. One is a credit card and the other is an auto loan that got repo'd. As a veteran, my school double charged my GI Bill. I lost both my compensation and GI Bill income that I was dependent upon. The bank took back my car after 3 months and I had to drop classes at school causing the government to take even more money back from me. The repo'd car was sold for less than I owed creating a $1600 debt. I was in a bad situation and just left both the debts and fell off the face of the planet for a while. The debts have long since been closed and written off. I've graduated school now and I have an amazing job. I can now pay off these debts. Should I worry about paying them? Will that help fix my 550-600ish credit rating? What is the best way to pay them off, in one large chunk or over time?

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Its complicated. paying them now will harm your credit rating as it will bring old debts to reflect as "new" and weigh heavy on your credit score.. plus if you are making payments only it will likely restart your states statute of limitations for them to sue you if its expired or close to it..  

the "moral" answer of couse would be to pay them.  but its far more complicated then that with the likely effect on your credit.  unless you can get the creditor to agree to a "pay for DELETE"  in writing, BEFORE you pay them back.  also keep in mind these debts are prob no longer owned by the original creditor and were bought by a junk debt buyer who likely paid 2-4 cents on the dollar. so the original creditor is likely seeing no money from you anyway.

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Dundun2

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My auto loan is still held by the bank as far as I can tell. I was never contacted by a debt agency about it. They just garnished my tax income this last year as this was my first state income tax refunded in several years. I'll talk to the bank to see if I can get the debt deleted if I pay it in full. Thanks for the inspiration! 

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