@Laurenm27 wrote:Hi there, I have an old debt where the first date of default was about 5 years ago. Last month the debt was charged off. Should I leave it alone at this point and let it fall off my credit report in 2 years? Or should I look into paying it off?
Kind of a question only you can answer; the risk here is the owner of the debt may file a law suit and gain a judgement against you. Have you tried to contact them and settle for less than the outstanding balance?
@Laurenm27 wrote:I went thru a "credit repair" company to try to dispute the debt a few years ago which didn't work. (In hindsight, bad idea to go with them). I am hesitant to go to the collection agency to try to negotiate to pay less now because it's been so long and I'm wondering if it's just better to wait another 2 years or not.
Collection agencies are the bottom feeders of the credit world, only to be out done in the race into the muck below the bottom by credit repair companies.
With the above said, it is a gable to try and wait for the SOL to kick in as they can take legal action against you and if they secure a judgement, then the SOL won't help you. Personally, I think it would be worth a call to see if you can settle for say 35 cents on the dollar (or some such).
You can do searches here, but I have read numerous stories of folks running into that very issue; they get to within the last month or three and then BAM, law suit. I don't know what the percentage of that happening is, probably well under 50%, but it is a risk.
@Laurenm27 wrote:Hi there, I have an old debt where the first date of default was about 5 years ago. Last month the debt was charged off. Should I leave it alone at this point and let it fall off my credit report in 2 years? Or should I look into paying it off?
Look up your states SOL. If its past that. They cant sue.
Need to know who the collection agencies names are. You might have one or both that will delte themselves once settled. Your past the SOL so they cant go legal.