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When I turned 18 I had a 685 Credit Score. I had bought a house and a car and had 1 credit card. I paid on everything perfect. When I turned 19 I found the magic in checks. I was young and dumb and went on a HUGE shopping spree with bad checks. I dug myself down to a 507 Credit score. I'm 21 now with a baby due in 5 weeks. I regret what I did so much and I'm trying to figure out how to fix it now. Will slowly paying off my old debt ($98,000 now with my foreclosed house, car that's not current on payments, and tons of bad checks out there) bring it up? Or what do I do? I realize it will take time, and that's fine, but I don't know where to start! Thanks for taking the time to help!
If it the debts have been reported as delinquent in your credit report or have been charged off by the original creditor, then paying off the debt will not improve your credit score. However, if you do not pay off the debt and the SOL on the debt has not expired, the creditor can sue you to the court and bring judgment against you to recover the debt. Now, if there is judgment against you, your credit score will fall further. So I think that you should try and pay them off.
Try to contact the creditors and negotiate with them to settle your debt for less. If you cannot negotiate with your creditors register yourself with a good debt settlement company. The debt settlement company will negotiate with the creditors and will make them agree to settle for 40 to 50% of the outstanding debt.
Since your credit score will not improve even if you pay off the debt in full, I think that you should settle for less.
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Stop making paeytnms and stop using your credit card and plan to negotiate with them when you see their tone change and they will want to settle to get something.Hope this helps.Rob