Pay default or wait until statute barred?

Freddiesmom

Hi Everyone,

After searching the internet for answers i still have no idea what to do about a debt I have, I'm hoping you guys may be able to help...

I have a debt that will become statute barred from July 2012, but wish to pay it in full as have the money to do so now. If I do pay it off will it start the clock and remain on my credit report for another 6 years from the date I pay it (and acknowledge it I guess). My other option is to sit it out and wait till July 2012 until it falls off my report.

My main aim is to have a clear credit report and improve my credit score as quickly as posssible and I'm worried that by trying to pay it off will put me in a worse situation.

Any help will be gratefully received!

KingElvis

I would sit tight and wait for it to "drop off" you can only be issued with one default and that must've been yonks ago.

How much is it? that would really be the question for me.

podperson

If you do decide you want to pay definately don't offer the full amount, after no contact from you in over 3 years they are much more likely to accept a low full and final settlement.
I think I would agree with KingElvis it would be based on the amount for me. If it was say a few hundred I would be tempted to do a low full and final and clear it for the peace of mind, however if it's a few thousand it's a lot of money to spend when it will drop off relatively soon.

treetrunks

In my opinion you should pay your debts especially if you do have the financial means to do so. Im guessing you took the money/goods/service in good faith and i think there is a moral obligation to pay for them.

KingElvis

treetrunks wrote: »

In my opinion you should pay your debts especially if you do have the financial means to do so. Im guessing you took the money/goods/service in good faith and i think there is a moral obligation to pay for them.

You have to remember that people's situations change over time and that the moral argument you put forward isn't always as simple as it may seem.

I stick by my comments and at this point in the debts life would do what's best for me and my present situation.

treetrunks

KingElvis wrote: »

You have to remember that people's situations change over time and that the moral argument you put forward isn't always as simple as it may seem.

I stick by my comments and at this point in the debts life would do what's best for me and my present situation.

i did acknowledge that when stating if you have the financial means to do so. The OP appears to have when stating he doesnt know if hes better off paying the bill.

DGJsaver

All very admirable Treetrunks but totally irrelevant to the quesions asked

Perhaps take your moral highground off to the discussion forum ?

KingElvis

treetrunks wrote: »

i did acknowledge that when stating if you have the financial means to do so. The OP appears to have when stating he doesnt know if hes better off paying the bill.

That's the problem with these things, sometimes paying it off and doing the right thing just brings down more trouble on your head.

The games and tricks these collection companies and banks play have to sometimes be turned in your favour to keep damage to a minimum.

Don't forget, they will throw everything in their arsenal against the individual so sometimes it pays to be smart right back at them