If credit card debt comes off of your credit report in 7 years anyway why should i try to pay it?
Sunday, January 24th, 2010 at
12:03 pm
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Excellent question.
While it’s right that it can trash your credit, after 4-5 years these ancient collection accounts have modest effect on your score.
The trick to this is to negotiate pay for delete agreements with these collection agencies so the negative mark is removed if you pay. If they won’t agree to delete the listing, don’t pay it. No reason to pay the debt and have your score trashed.
Edit – Robert is right for the most part in stating that the SOL does not negate the debt. But, there are a link states in which the expiration of the SOL will extinguish the debt, unfortunately I don’t have the list in front of me though.
Also, if you send the collection agency a stop and desist letter then by law they cannot contact you any further. Now if the SOL has expired, and the 7 year reporting period is over you can send the C&D which will effectively cut the legs out from under the collection agency as they have no means to collect the debt. Their only recourse would be to sell the debt to another collection agency, but another stop and desist letter will cut them off too.