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Patrickcottingham

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Paying a debt in collections and affecting 7 year fall off
I have many items of my credit report that will fall off after a year or two. However, that debt will still exist even if they have no legal ability to collect it. I have read disputing comments that if you pay off a debt it will cause the Credit Agencies to re-new the fall off period. This makes absolutely no sense to me. Why would they encourage people to not pay debts. It would seem to me that paying it off would be a positive thing. This fall-off is also not the same thing as the SOL on the collectors ability to sue you. Anyone with legitimate credit knowledge please reply.

I am guessing that the fall off doesn't re-set, but rather that it is marked as paid in full, which reflects a positive activity, but shows...from what I have gathered from research for 10 years. Maybe this is wrong. Enlighten me!

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Yep Patrick you are completely mis-interpreting the information you are researching...... First off when you are disputing an item you must guage for yourself which senereo is more profitable for your current credit situation. #1. Bad debt can only stay on your credit report by law for a max of 7 years from the date it was delinquent. If you are trying to repair your credit; then you can dispute the item. Sometimes collection agencies only retain partial information concerning your bad debt. Most times it will work in your favor to dispute the validity of the debt to the credit bureaus because they can not provide complete or accurate information that you owe the debt and therefore it must be legally removed. #2 You can also try to do a "pay for delete" agreement. This is where you plea bargan with your creditor personally and ask if you pay the debt off in full and in return have them to remove the debt entirely from your credit file. (the goal to perfect credit is to completely remove all negative history). #3 You can just pay off your debt that you owe, they will report it as paid in full or paid as agreed, however it still leaves info in the negative history section of your credit file for potential creditor to look at when pulling your credit.

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redguy411

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#4 If your debt is really old and you only have a few months to a year left on it based on the 7 year law; it wouldn't hurt just to wait it out and wait for it to fall off you report..... Partially paying bad debt does renew the SOL rule and delinquentcy rule. Only pay debt that you plan to pay in full or stay committed in paying it off completely. Also if you still feel obligated to pay a bad debt once it falls off, then contact the creditor and pay the debt, keep in mind that it could restart the collection proccess if you fail to do so on your end. Hope this helps. Good luck my friend.....

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Thanks, My main concern was not the SOL, I realize if you start payments and stop you screw yourself. But I was confused mostely about if I do pay a debt off, will it reset the fall off. Since it stays for 7 years on my credit, if I pay it, it will still be there...thats fine, but does it mean I have to wait another 7 years for it to come off my credit. 

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Thank you I think that answered everything. I have opted to wait it out for now. I have 2 years of school left. So I have time. I am just trying to get my life in order before I start making more money. I dont want to be stuck in this loop of debt, mostly health debt. So I dont have it as bad as others. No credit card debts or the like.

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