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dlj20620

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Is it really worth paying charged-off accounts?
I have two unsecured credit cards, a car loan and student loans all in good standing for at least the past three years. I had a Chase credit card and a few retail cards sent to collections in 2014, plus a few medical bills. Chase and Target are still with the original creditors; the remaining three retail cards are with collectors. Is it worth it to pay off all or some of the charged off accounts? Or should I just focus my resources on maintaining my current and open obligations? I don't foresee needing to make any major purchases in the next few years.

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First, you should always pay your debts, I would never encourage not payment a debt owed.   You should work to continue paying your current debts as agreed and work to pay off any past due debts.   You state that you don't foresee any major purchased in the next few years should not be your deciding factor.   The debts from 2014 will continue to haunt you well into 2021 (Or longer.)   At any time, on these past due accounts, you can receive a summons to visit your local court to make the debt good and failure to do so, can seriously impact your income level should a levey be placed upon your pay check.   As long as you are working with them and making payments, they are not as likely to take this step.   At any time, any of these creditors who you are not paying can sell your account to another collection firm and thus another reported collection you owe and an additional 7 years on your credit report.    Too many people wait until that major purchase to worry about their credit at which time, it is too late for that morgage/auto finance application.    Take the steps today to pay off those debts.

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"At any time, on these past due accounts, you can receive a summons to visit your local court to make the debt good and failure to do so, can seriously impact your income level should a levey be placed upon your pay check" ​There is such a thing as "statute of limitations" to be sued for debt, it varies from state to state, after the "sol" has expired, wages cannot be garnished and the debt is legally not collectable.

"As long as you are working with them and making payments" ​Doing this can restart the "statute of limitations

"thus another reported collection you owe and an additional 7 years on your credit report​" ​The credit reporting time period cannot be restarted legally by anything. Reporting time periods are NOT restarted when a new collector takes over an account.

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Sometimes it is and sometimes it isn't. It is not going to help your credit much, unless you can get the negative accounts REMOVED rather than just marked as paid. You will be unable to get a "pay for delete agreement" with regular credit card companies, but sometimes can with Debt Collection Companies. Look up the "statute of limitations" to be sued for this type of debt to see if you are even legally on the hook yet. I strongly advise against entering any type of payment plans. In general I disagree with most of the advice given by the other poster. It is a case by case deal on what you should do, sometimes it is best to pay to get a collection removed or to keep one from popping up and other times it is best to just let things age off.

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