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SimplyFaith

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Paying off a negative account
Is it worth it to pay off an old account of 3+ years or should I just ride it out for another 4 years. My concern is the clock will start over and I will have to wait 7 years for it to fall off my credit report versus waiting 4 years.

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The clock will not start over if you pay it. The 7 years starts from the date of first delinquency (dofd), this is the first payment that you've missed that led to the charge off and/or collection. When dealing with old negative accounts, the best thing that you could do is get a "pay for delete" agreement. You can google that to learn about it. If the creditor/debt collector refuses to do a PFD, then the second best thing you could do is to get them to settle for less than what you owe. Either way make sure you are ready and able to pay the full amount at once. I would never advise entering into a payment agreement with a debt collector on an old account, they will most likely set you up for failure with high fees and/or interest, and if you would enter into a payment agreement and happen to miss a payment or stop paying on it then that can reset the Statute of Limitations to be sued for the debt (not the credit reporting time period, it doesn't change). It would also be a really good idea to see what the Statute of limitations is in your state to be sued by a debt collector and see if this debt is within it or not, You usually have much more bargaining power if it is outside the SOL in your state, if you are close to the SOL expiration, then I might wait until then to start negotiations. Good luck in however you proceed.

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