Beyond bad credit-struck by lightening twice

Sheri257 · Nov 27, 2005

Pay off past due and charge offs within the last two years. Beyond two years it will have no impact on your score if wiped out. In fact, the act of paying it off can actually take your score down temporarily.

Thanks for this info. Great stuff ...

I see the distinction here ... "old debt" is anything over two years. I paid those bills within two years, which is why it didn't hurt my score.

So two years seems to be the key ... very interesting.

:coollook:

Sheri257 · Nov 27, 2005

The statute varies from state to state. Here in TN you have 6 years to get a judgment I think.

Wow. I didn't know that some states set limitations like that. My husband just collected the remainder of a judgement involving a car accident that went back to 1998. That also involved a property lien. So ... I guess it does vary state by state.

:coollook:

august_snow · Nov 27, 2005

Struck by lightning.... well that implys bad luck. Your situation was created by you. You bought something on time which means you couldn't afford it. And you abdicated your financial responsibility to others.
I think you will learn from past mistakes. Work hard for your money and save up. Pay with the cash you earn. If the money is not in the bank then you can't afford it.

Um, excuse me, but maybe you need to go back and read my post. I bought the item when I had a job and had no clue that I was going to walk in one day and the company was going to be gone. At the time, it seemed better to hand it to a family member whom I trusted because at least, I thought, it was going to get paid-which seemed to me-better than not being able to pay it at all.

As for the second one, it was my husband. I don't think I was wrong in helping him at the time and expecting him to be responsible enough to pay it the following week like he said. He does feel terrible for this.

I am taking responsibility. I have never done anything myself to my credit. I have always paid on time and paid it off. I couldn't afford a crystal ball at that time to realize these situations were going to come up.

I am setting up payments because they are in my name-so they are mine to take care of in the end.

Lisa CCU RN, RN · Nov 27, 2005

Wow. I didn't know that some states set limitations like that. My husband just collected the remainder of a judgement involving a car accident that went back to 1998. That also involved a property lien. So ... I guess it does vary state by state.

He had the judgment already? This would be different because the order to pay was already in place. So he would have however long to collect an already in place judgment. What I'm speaking of is actually getting a judge to palce an order to pay. There wouldn't be a limit in how long it actually takes to collect the money though. In reality, big companies are not going to sue every single person that owes them money. To do so would be inefficient and costly. If they are unable to collect immediatley, they have just put themselves in the hole because they will be out time and court costs until they can sue and collect that amount from you. If the company doesn't think they can get it from you they are less likely to sue. Now a small company with few clients is more likely to sue because they have less clients and more time. If a creditor is not in your state then they have to send representatives to you and take you to court. A company like wal-mart may have the money to send a lawyer to sue you, but they also may have thousands of people whao have defaulted on their credit obligations and each must be dealt with one at a time. You have to get court dates, send out notices to appear in court, you have to find the person, pay court costs. If the time and money spent to find someone, pay court costs, etc to sue someone over a small amount ( like less than $1000 dollars) would exceed that amount, then they are less likely to bother and will probably just charge off the debt.

nurse4theplanet, RN · Nov 28, 2005

True ... but at what rates and fees? Usually you have to pay through the nose on those deals when you have bad credit. It's very expensive. One way or the other, you end up paying the debt ... really. Might as well pay the bills on time and save your credit.

That will depend on the lender and the unpaid debt in question. I am not saying that she should not try to fix the problem. But what is done is done so she needs to relax and figure out a plan to deal with it. It's not the end of the world.:) Like another poster said she may not help her credit even if she paid it off, so its best to see a financial counselor who can help her mull through all the options.

Jo Dirt · Nov 28, 2005

BTW ... the unpaid bill does stay on your credit report, even when you pay it, for seven years. There's no way around it if it's a valid debt. But, of course, it looks better when it's paid than not paid.

Stays on your credit report but has no effect on your score. I had some unpaid bills and before I could get the mortgage on my house I had to pay the bills and it took 90 days to get them removed from counting on my score. But anymore I don't do credit, so I don't sweat my credit score.

HitmanCFYA · Nov 28, 2005

Go to http://www.daveramsey.com.
I've spent so much time and energy in my lifetime worrying about money and debts. I am finally in a place where I have no worries. I have a plan, know where my money is going, what is coming in and what is going out. I have read so many books about money management and most of them were ok. They all said you need to budget and plan, but most of them never laid out how you go about doing all that. Because of the advice and tools I learned from Dave's books and tapes, I finally feel have financial peace. I know I will be able to retire someday, something I never thought would happen. I just wish I had found his books and tapes years earlier.

Dave's the man. I listen to him everyday. It makes life so much easier not having to worry about a bunch of credit card bills, or student loan payments, or whatever. He's starting to get more and more mainstream. Oprah, Today Show, 60 Minutes, etc. Just fundamental stuff too. Nothing gimicky.

Debt is dumb. Cash is King. :)

Scott...doing better than I deserve.

Faeriewand, ASN, RN · Nov 28, 2005

hmm

nurse4theplanet, RN · Nov 28, 2005

I did read your post thoroughly the first time and I still stand by what I said. You did create your own situation, (going on the supposition that we all create our own "situations").
Some people live by the belief that if one cannot pay for an object with cash up front then one cannot afford it. It's just a way to keep out of debt.
It's understandable to help out your husband and expect him to pay when the time comes but where you come in is by checking that did he in fact pay that bill?
I'm not saying these people did not do you wrong. Sure they did.
I have no doubt that you are a responsible person and just felt blindsided by these financial situations. If one can see what their part is in a situation however, then one can see more clearly and learn from life's experiences.
This coming from one who has made many mistakes....financial and otherwise.

I think that you meant well but your wording took on a sort of tsk-tsk kick em when there down tone. She doesn't need to hear what she did wrong, bc it doesn't matter....what's done is done. She needs advice on what to do about it NOW. See my point?

Faeriewand, ASN, RN · Nov 28, 2005

Yeah. I stand corrected. My apologies.

airis · Nov 28, 2005

First of all, do not let bill collectors be successful in scaring you with their tactics (often which are not legal). Bill collectors are scum. This isn't saying you should be excused from owing the money, but a bill collector's job is to get you emotional so you feel you must take action right away, even before putting food in your mouth or keeping your lights on.
They will get nasty with you. They will threaten you, but keep in mind you are talking to an idiot in a cubicle probably 500 miles away who has NO authority whatsoever.
THEY ARE NOT GOING TO TAKE LEGAL ACTION. Don't let them bully you.
I used to believe that collection agency wont take any legal actions. They used to send my husband nasty letters saying they were going to garnage his wages or take him to court. So, oneday we got a letter from the court saying he had to appeal on this date but he didnt. Few weeks passed we havent heard from the court but we still kept getting letters from the collection agency. Last friday when my husband got paid, his paycheck was reduced because the credit company garnished his wages. When they say they will take legal action they are telling the truth.
My husband stopped paying this credit card 8 months ago and now the company garnish his every paycheck. The solution is to file bankruptcy.

airis · Nov 28, 2005

First of all, do not let bill collectors be successful in scaring you with their tactics (often which are not legal). Bill collectors are scum. This isn't saying you should be excused from owing the money, but a bill collector's job is to get you emotional so you feel you must take action right away, even before putting food in your mouth or keeping your lights on.
They will get nasty with you. They will threaten you, but keep in mind you are talking to an idiot in a cubicle probably 500 miles away who has NO authority whatsoever.
THEY ARE NOT GOING TO TAKE LEGAL ACTION. Don't let them bully you.
Second, if bad credit kept people from getting a license or a job there would be about half as many licensed and employed people as there are. The only thing you might be concerned about is your loan from school, as the school does have the authority to garnish your wages until the bill is paid. But so what? When the bill is paid it is paid and will be off your credit.
I personally do not believe in credit. So my fica score (or whatever it is) means nothing to me. Contrary to what some people will try to make you believe you can exist in a world without credit and do it well. But whatever you decide to do don't let those bill collectors put fear into you. They are full of hot air, that is all.

I used to believe that collection agency wont take any legal actions. They used to send my husband nasty letters saying they were going to garnage his wages or take him to court. So, oneday we got a letter from the court saying he had to appeal on this date but he didnt. Few weeks passed we havent heard from the court but we still kept getting letters from the collection agency. Last friday when my husband got paid, his paycheck was reduced because the credit company garnished his wages. When they say they will take legal action they are telling the truth.

My husband stopped paying this credit card 8 months ago and now the company garnish his every paycheck. The solution is to file bankruptcy.