Hey everyone,
I’ve got about $13,000 in debt—some credit card balances and $5,000 in student loans. My dad says I should just wait it out for seven years and let it drop off my credit, but I’m thinking about paying it down to rebuild my credit. The problem is, my financial situation is shaky, and I’m not sure I can keep up with payments. The accounts are already charged off. What would you do?
If you don’t get sued, the debt will eventually fall off. If they do serve you, you can look into settling. Most of the time, they just let it go.
If your dad could cover the student loans and you handle the rest over time, that might be the best option.
Payne said:
If your dad could cover the student loans and you handle the rest over time, that might be the best option.
That’s not happening. He’s not going to help.
Payne said:
If your dad could cover the student loans and you handle the rest over time, that might be the best option.
Where did you see that his dad is even offering to help?
Payne said:
If your dad could cover the student loans and you handle the rest over time, that might be the best option.
Where did you see that his dad is even offering to help?
I didn’t, just throwing out an idea.
@Payne
Your credit is already affected, so why rush? Either ignore it and let it drop off or negotiate a lower settlement. It’s up to you.
If you don’t care about your credit score, you could let it stay in collections. Paying after that point won’t add extra interest.
Your dad should step up and just pay it off for you.
Debt doesn’t just disappear. If the amount is high, you might get sued.
Reagan said:
Debt doesn’t just disappear. If the amount is high, you might get sued.
It will fall off if no lawsuit happens. These companies buy debt for pennies on the dollar and try to get people to pay. If they do sue, they sit on the judgment and let interest rack up, waiting for you to own something they can put a lien on. It’s a long-term game for them.
@Teegan
Not true for everyone. Some companies go hard, others just send settlement offers. I know someone who ignored two $19K debts, and now the time limit to collect is almost up. Not everyone gets sued.
Reagan said:
Debt doesn’t just disappear. If the amount is high, you might get sued.
I had a $7K debt disappear just two years after it went to collections.
Your dad is wrong. Debt doesn’t just vanish. If a collection is paid, it drops off after seven years, but unpaid debt sticks around.
Maxwell said:
Your dad is wrong. Debt doesn’t just vanish. If a collection is paid, it drops off after seven years, but unpaid debt sticks around.
This isn’t true. The law is there so people aren’t stuck with debt forever. Even bankruptcies go away after 10 years.
@Teegan
I wasn’t saying it doesn’t fall off, just that the debt itself still exists. The law just stops collectors from suing after a certain time.
Maxwell said:
@Teegan
I wasn’t saying it doesn’t fall off, just that the debt itself still exists. The law just stops collectors from suing after a certain time.
It disappears completely. If it didn’t, lenders and underwriters would see it and hold it against you. That’s why there’s a time limit. A debt from 15 years ago won’t show up anywhere.
@Teegan
You’re both kind of right. From a credit report perspective, it’s gone. But the original company will still know you never paid and could refuse to do business with you again.
Maxwell said:
@Teegan
I wasn’t saying it doesn’t fall off, just that the debt itself still exists. The law just stops collectors from suing after a certain time.
Credit reporting agencies have to remove it after seven years.
Maxwell said:
@Teegan
I wasn’t saying it doesn’t fall off, just that the debt itself still exists. The law just stops collectors from suing after a certain time.
Yeah, it’s a seven-year thing. In NC, the time limit for collecting is three years.