Paying off charge offs/collections, re-aging concerns

[jordanen]

I have tons of baddies.  Approx 17 CA's mostly charged-off debts.  Some of it I know I'm gonna have to bite the bullet and pay.  Sprint and Brighthouse are two examples of this. Others I'll pay to be removed from blacklists and re-establish good credit, Walmart for example.   Most of this debt is about to age off, but from what I know they can hastle you for life. I somehow have a  credit one card (300) which is my only positive account to  date.  If I bother to pay these off, will the CA's be dirty and attempt to re-age the debt, starting a new 7-year period? Oh, most of these debts are also time barred. If I choose to pay these debts, I'll save enough money till I can PIF...settlement just looks bad on the report, and I won't make payments.  The only reason I'm even considering this, is because of my morals...mathematically, its the stupidist thing I've ever heard.  What are the communities thoughts?

[MarineVietVet]

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@jordanen wrote:

I have tons of baddies.  Approx 17 CA's mostly charged-off debts.  Some of it I know I'm gonna have to bite the bullet and pay.  Sprint and Brighthouse are two examples of this. Others I'll pay to be removed from blacklists and re-establish good credit, Walmart for example.   Most of this debt is about to age off, but from what I know they can hastle you for life. I somehow have a  credit one card (300) which is my only positive account to  date.  If I bother to pay these off, will the CA's be dirty and attempt to re-age the debt, starting a new 7-year period? Oh, most of these debts are also time barred. If I choose to pay these debts, I'll save enough money till I can PIF...settlement just looks bad on the report, and I won't make payments.  The only reason I'm even considering this, is because of my morals...mathematically, its the stupidist thing I've ever heard.  What are the communities thoughts?

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Hi there.

The CRTP (Credit Reporting Time Period) for unpaid debt cannot be (legally) be changed by anyone.

It's your choice whether to pay them or not. Be aware though that even after the CRTP has expired collection attempts can in theory go on forever.

[jordanen]

Aah, so they can't re-age the debt at all?  I don't need anymore negatives than what is already there. Is there anything special I should look out for? And, would paying these debts even get me off a blacklist? Can they be dirty and decide to keep me on the list although I've paid (SUCKER!!!) Should I follow my head (do nothing,) or my heart (pay these off over time?)

[js0319]

There have been instances where re-aging has occurred once you entered a payment installment agreement. Doesn't necessarily mean it's right or legal, but it has happened. If you're going to take care of the debt, pay it in one lump sum and on terms that are agreeable for both you and the CA or OC. 

[jordanen]

Thanks for the reply! I plan to pay in one lump sum...save the money, then PIF. My question about blacklists still remains...can you be "punished" for paying the debt?  Can you remain blackballed even after resolving the debt?

[js0319]

Depends on the creditor. Some companies do, and some don't. For example, I had an unpaid Citi-backed Home Depot card debt that literally just fell of my CR two months ago, and I was just approved for a Citi Double Cash card with 12.99% APR and a $3,600 CL. I have heard Chase and AMEX blacklist though. 

[jordanen]

I have no debts with chase or amex. I have two monster debts, 5K and 6K with cap1 and BOFA respectively. Most of the other stuf is under 2K with the GE/sync cards, walmart/macy's/dillards/paypal, all under 2K.  My plan is to begin paying the debts, lowest balance to highest, leaving the monsters last.  I heard Cap1 will let you back   in after payoff, how about the GE/sync cards?  Walmart is useful to apply for again...also care credit.

[js0319]

Yes, Cap1 will let you back in - almost like they're waiting to let you back in. Not too familiar with GE backed cards, but I can tell you from experience that Macy's does blacklist, even if it's paid. 

[jordanen]

Wow, I won't pay macy's then...that'll save me 1.2K. Sorry, I won't pay for a punishment. That makes no ethical, or mathematical sense. Is there any way to appeal or recon? If not, I'll remove macy's from my list of debts promptly.

[js0319]

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@jordanen wrote:

Wow, I won't pay macy's then...that'll save me 1.2K. Sorry, I won't pay for a punishment. That makes no ethical, or mathematical sense. Is there any way to appeal or recon? If not, I'll remove macy's from my list of debts promptly.

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The charge-off was on my wife's credit report. We asked for a pay for deletion, and once it was paid it was deleted from her report within a month or so. That is going to be the only benefit to paying the Macy's account off. She applied for a Macy's credit card during the holidays last year, but she was denied due to her previous account, even though it had been paid. Also, there is an ethical upside to paying your debts.