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Question By
Diasmah

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Should I pay off these 6.75 yr old credit cards??
I have 2 credit cards that I have not paid on since May of 2007... almost 7 years ago.
My credit limit on the cards were both $500 but now the company wants about $2000 for each card... $1500 in interest?

One person is telling me, DONT TOUCH THEM! Their SO old (almost 7 years) and they will fall off soon and be forgotten...

Another person is telling me, Pay them both off ASAP and your score will go up up up!

Both coming form financial advisors... what to do? who to believe?

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No contact?

Helpful to 16 out of 17 people

if you have not had any contact with the CC co's then let a sleeping dog lie. 

If you have had contact with them, that is a different situation.  The 7 years is counted from the "Date of last Contact" so if you contact them it resets the clock.  If you have been in contact with them them try an "Offer and Compromise" but be prepare to pay a substantial amount to settle the debt, Generally 50 to 60%.  If your not able to do that then you might try a payment plan. 

All contact should be in Writting. Never talk to them on the phone. 

Before you send them any money get a written agreement as to what action is to be taken and make sure that you get them to agree to removing the negitive reports from your Credit Report as part of the settlement.

Good luck!

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Helpful to 5 out of 6 people

It isn't last contact that resets the Statute of Limitatioins for collection, but the "date of last activity" which usually means payment.  Look up statute of limitations for collectiions and see what it is in your state, since it varies.  My state SOL is 6 years so these debts would be uncollectable due to expiration of SOL and they would fall off after 7 years.

From here on out, though, make it a good habit to pay your bills.  You'll prove to be a responsible person when you do.

Reply by
lacyblueii

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Helpful to 5 out of 5 people

If your debt has been in collections on your credit for say? 4 years. Ok...if you do nothing....it will come off completely in 3 more years max. BUT! IF YOU PAY? It stays on your credit as delinquent for ANOTHER 7 years from the date the credit moved, or you paid, or something changed. Crazy the way they do it...but they do.

Reply by
behaulk

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Helpful to 0 out of 1 people

This is correct. Great books to read or listen to are Kevin Trudeau and Dave Ramsey. Now is the time to start changing your life. Little by little, I have it's taking awhile but I feel a relief each year. Hand in there!!!

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They will fall off your report at 7 year

DO NOT PAY THEM. 

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Collection Agency

Reading the comments above I have another question.  Just recieved a letter from Oliphant Collections for an amount that is no where on my credit report.  If I call and ask WHO they are collecting for would this void the 7 year SOL?  This same company took me to court years ago for an unpaid debt more than 7 years old and WON, I made payments through the court for 2 years.  Even the judge agreed they were over the SOL but their lawyer pulled it off.   I don't know what to do.   Any ideas???

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