Credit vs saving dilemma

DeniseNTexas · #1 (**permalink**) 01-16-2008, 06:46 PM

I don't have any current debt right now - no house or car payments, no credit cards, and I'm not behind on anything. However, I do have some old debt and credit issues on my credit reports.

I've read about credit and debt until my eyes are close to crossing but I can't figure out if I need to go ahead and start paying on those things, let them roll off, or what! I've read that once I start paying on them I'll be contacted by all the others wanting their money, too. But I simply can't pay them all at one time, not even if they were willing to take payments. And I don't want to make payments. I want to pay as many as I can in full.

Later this year I'll have a few thousand dollars that I could put toward those debts but I don't know the best way to handle it. The money won't be enough to pay ALL the old stuff but it could make a dent in it.

I also have a NEED to save some of the money.

Should I wait until I have the money then contact the people and try to pay them or what?

I appreciate your help. This is very confusing!

Seeker · #2 (**permalink**) 01-18-2008, 05:16 PM

The statute of limitations determines how long a debt may be pursued (legally). Each state's policies are different:

Debt collection statute of limitations listed by state

Your state seems to have a 4-year limit.

I'm not sure when or even if the debts will come off the credit report ; they may be there until you decide to pay.

DeniseNTexas · #3 (**permalink**) 01-18-2008, 06:01 PM

Thanks for the reply. I've read that before but honestly I'm not sure what it's saying. What I mean is..a 4 year period for what? A 4 year period during which they can pursue the debt? A four year period during which a creditor can sue? And it also says 'types of debt' but not what type. How muddy is that.

bjl584 · #4 (**permalink**) 01-18-2008, 06:13 PM

Something like, they may pursue you for 4 years. If you are able to evade them for that long (no phone calls, direct contact, etc.) then you are off the hook so to speak. If they call you and you answer the phone and speak with them that breaks the statute and the 4 years starts all over again. I guess it's a matter of how your conscious guides you. If you feel guilty or have a scence of responsibiliy to pay your debts, then settle and be done with it. If you are on the other end of the spectrum, then screen your phone calls, don't write any letters, and don't walk into their offices. Hide until the statute runs its course.

DeniseNTexas · #5 (**permalink**) 01-18-2008, 06:18 PM

Well, I get letters from a few of them but very few. And I haven't had a phone call from most of them in several years, at least four. I've moved, don't have a landline, etc. over the years.... I'll check into that.

Seeker · #6 (**permalink**) 01-18-2008, 08:14 PM

Quote:

Originally Posted by DeniseNTexas

Well, I get letters from a few of them but very few. And I haven't had a phone call from most of them in several years, at least four. I've moved, don't have a landline, etc. over the years.... I'll check into that.

The four years is based on Texas policy; other states may have different policies for collection. I cannot tell if you've "moved" beyond state borders; whatever place (state) you've purchased from, that's the state's SoL (statute of limitations) you should be aware of.

I believe your credit history pretty much follows you around for a very very long time. Even a bankruptcy may need to be "petitioned" off a credit report after it's 10-year statute-of-limitation. As far as I know, your debts will not "just fall off".

You can petition errors off your credit report, but if it's really your debt, and you will be needing "good" credit in a future time, then these would count against you.

DeniseNTexas · #7 (**permalink**) 01-19-2008, 11:45 AM

I've stayed in Texas. My credit rating isn't my primary interest right now. But I feel I have a moral obligation to pay the debts. I just don't know the best way to do that and am concerned that once I pay off one or two creditors the rest will start harassing me. I want to pay them all but simply don't have enough money to do that right now.

Seeker · #8 (**permalink**) 01-19-2008, 05:03 PM

If I were you, I'd be going to a lawyer who can advise you about this.

When I look at the specific code of Texas (Section 16.004), it really does not tell me what you want to know. Your basic question is (and what you should ask a lawyer):

If I approach a creditor about paying a SoL expired debt, will other creditors (from other past due debts) have recourse against me?

The Texas SoL does not specifiy (In Calif if I approached a creditor about a SoL expired debt, that creditor can thereafter pursue me --- I'm not sure if other creditors can -- but definitely that creditor can).

At any rate, I'd recommend that you discuss it with a lawyer familiar with your debt collection laws.