Question about how to handle a debt

[Anonymous]

I have a charge off of about $6,500 that reports every month as deliquent. I dont have the money to pay it but I wanted to know if anyone here may have some suggestions on how to handle this debt? Should I make payment arrangements to keep them from reporting? Should I just let it fall off in about 6 years? What is the best way to handle it?

[CatOfSpades]

You can't keep it from reporting. If you have any money at all, you could call them and see if they will settle the balance, say $3000 to settle and close the account, and get anything they agree to in writing, of course. A settled debt will stop reporting as deliquent every month and free you of any further obligation. You could try a payment plan, that will also stop the deliquent reporting. I would definitely do something. You owe the money, and they will hassle the crap out of you. Depending on who you're dealing with, they can drag you to court and garnish your wages. My uncle has had wage garnishments. I haven't asked him about how it works or how long he was delinquent. How long they're willing to wait is going to vary greatly from creditor to creditor. 

[RobertEG]

First things first..... assessment of your potential legal peril should they decide to sue.

What is the date of your first delinquency on the account, and what is the SOL in your state for this type of debt?

[Anonymous]

Date of first deliquency would be February 2014. SOL for NC is 3 years. 

[RobertEG]

If you cant afford to pay in full should they demand full payment, I would sit tight for the next 6 months, and hope for expiration of SOL.

That will thereafter put you in a better negotiating position.

[Anonymous]

Thats great advice. Thanks so much!

[RonM21]

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@RobertEG wrote:

If you cant afford to pay in full should they demand full payment, I would sit tight for the next 6 months, and hope for expiration of SOL.

That will thereafter put you in a better negotiating position.

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Very good point!!! You know your stuff man!

[Anonymous]

Just be aware that if you aren't going to pay it, that they can and will come after you legally. You can take your chances riding it out, but if you have someone who's a good collector such as myself. I would sue you, and make you pay it. Just be prepaired for that to possibly happen, especially if it's nearing SOL they just might to keep it on the books for another 10 years.

[RobertEG]

If they do decide to sue prior to expiration of the SOL, you can always pay them in full prior to any trial, thus avoiding  judgment.

You would likely pay full price, but it would not go to trial if you paid what they are suing for.