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Aggregate
Stranger
Registered: 08/03/20
Posts: 18
Last seen: 1 year, 5 months
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Debt dilemma
#27027000 - 11/07/20 02:50 PM (3 years, 3 months ago) |
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Some time ago things fell apart for me and I stopped paying my credit cards. I was drowning in debt from bad decisions I made as a youth. I’m doing a lot better financially but my credit has to be shit at this point. I don’t even want to know where it’s at right now. I’ve received letters from debt collectors offering me the ability to square my debt at a fraction of what it is.
My original plan was bankruptcy and to never put myself in that situation again, but because I think I can make these payments, I’m considering them. Should I pay these debts off at the price they are now asking? I’m assuming my credit will still be horrible and I don’t know how this will look on a credit report.
Any input is appreciated.
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BeardedWizard
Stranger



Registered: 09/10/20
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Loc: Meeshgan usa
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Bump
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Ahab McBathsalts
OTD Windmill Administrator




Registered: 11/25/02
Posts: 35,117
Loc: Wind Turbine, AB
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-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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Nichrome
I'm a torso!



Registered: 12/17/18
Posts: 6,577
Loc: Zone 5
Last seen: 17 hours, 52 minutes
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Look into time frames on how long the debts last. I think they disappear after 7 years. Folks have good luck disputing claims. The collector has to file paperwork and "prove" your debt to them every time you dispute (every other week). You can dispute a claim online for free with any number of free credit report sites. There are hundreds of reasons to dispute and if they didn't have all the info correct you will most likely win. Most cases the paperwork is nor filled out correctly and disputing the claim can make it vanish most often. Ending a debt through dispute of claim removes it from record as if it never existed.
Be careful not to respond to any calls or letters. Every time you do they can say that is acknowledgment of said debt.
If you agree to pay out, remember to get acknowledgment from them in writing that your debt will be removed from record before you agree to pay.
I'm not a lawyer or financial advisor and this statement is for entertainment purposes only.
-------------------- “Better to be deprived of food for three days, than tea for one.”
Freedom is not the right to do as you please, but the liberty to do as you should. ~Emerson
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Brian Jones
Club 27



Registered: 12/18/12
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Re: Debt dilemma [Re: Nichrome]
#27048369 - 11/20/20 05:13 AM (3 years, 2 months ago) |
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Bankruptcy generally "disappears" in 7 years. Whether you should do it depends on how much you owe. I bankrupted $44,000 after illness and sleeping pill addiction, so it was the right choice for me. It costs about $2600. I quickly built my credit scores back up to about 720 but a couple places, Shell gas and Kohls, still refuse me.
I originally wasn't going to file bankruptcy, and was building my credit back up with a secured credit card when Capital One said they were taking me to court and would garnish my wages, so they made my decision for me. In retrospect, I'm glad they did. It only took about 6 months before I started getting offers from regular credit cards with no annual fee. The interest rates are very high so I never carry a balance. The funniest part was right after I filed, every car dealer within 100 miles wanted to give me a loan.
-------------------- "The Rolling Stones will break up over Brian Jones' dead body" John Lennon I don't want no commies in my car. No Christians either. The worst thing about corruption is that it works so well,
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Rat-a-Tat
Psychedelic Student



Registered: 07/11/17
Posts: 219
Last seen: 1 year, 3 months
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Quote:
Aggregate said: Some time ago things fell apart for me and I stopped paying my credit cards. I was drowning in debt from bad decisions I made as a youth. I’m doing a lot better financially but my credit has to be shit at this point. I don’t even want to know where it’s at right now. I’ve received letters from debt collectors offering me the ability to square my debt at a fraction of what it is.
My original plan was bankruptcy and to never put myself in that situation again, but because I think I can make these payments, I’m considering them. Should I pay these debts off at the price they are now asking? I’m assuming my credit will still be horrible and I don’t know how this will look on a credit report.
Any input is appreciated.
Yes - we need much more specific information in order to help you. The first thing you need to do is figure out where you are. It might be scary to look, but once you do, you will find out that it's not that bad, and anything can be solved with proper planning. Are you in the US? If so, you need to sign up for a free account on Experian, and get a free look at your credit report. Debts are wiped from your report every 7 years, so it might not be helpful to pay off, especially if they have been transferred to a debt collector. We can 100% help you out and give you sound advice, but you need to go look at the damage and get an accurate picture. Come back here and tell us about your job, your monthly take home pay, your monthly expenses - and then get on your credit report and list your debts from smallest to largest and the date that you made your last payment. We can tackle this, but don't procrastinate. Go get that shit ASAP and report back.
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