How do I pay my debts?

[thomasm]

Hello, my name is Tom and I am new to this forum. I have some debts that I need to clear up, ones I did not realize I had, and I am hoping that some people here can offer me some help and suggestions. The debts I have are all older and all with creditors. I did not realize I had these debts as I do not remember having any mail notifications, but I have moved around quite a lot the last few years so there is a chance I never received them. I know I have a low credit score so I used the Annual Credit Report website and checked one of the three creditors they let you check for free. That is where I found my history. There are some debts which I have paid off in full, but there are a number still in collection.

Can anyone help me best know what to do from this point please? I am not getting any mail or notification about these debts, but I do see I have them on this report. Should I directly contact the creditors listed on the report, and pay each debt? I know that I must receive a receipt in writing from each of them. Or is there a better way I should be handling this as I pay everything off. There are a few of them but nothing more than $1,000 and I have the money to pay them all off (non emergency fund).

I would very much appreciate anyone’s help who can offer it. Thanks

[Nutria]

I'd do exactly what you're thinking: pay off the original vendors then -- as you mentioned -- save those receipts.

But before that: since you don't remember some of them, call the vendors and ask for copies of the receipts before you pay. And look in your bank & CC web site for old transactions showing where you might have paid them.

Good luck.

[thomasm]

I'd do exactly what you're thinking: pay off the original vendors then -- as you mentioned -- save those receipts.

But before that: since you don't remember some of them, call the vendors and ask for copies of the receipts before you pay. And look in your bank & CC web site for old transactions showing where you might have paid them.

Good luck.

Thank you for your post.

Most of these are in collection, so I don't exactly know what they are for. Do I need to contact the collection agencies to ask them for some information?

[Nutria]

Most of these are in collection, so I don't exactly know what they are for. Do I need to contact the collection agencies to ask them for some information?

Since the collection agencies haven't yet contacted you, you don't officially know that your debts are in collection. So, try to pay the original vendors until they say, "Nyet".

They may say that it's too old and has rolled off of their system. Or they may not. Some might work with you, and some might not. You won't know till you ask.

[thomasm]

Since the collection agencies haven't yet contacted you, you don't officially know that your debts are in collection. So, try to pay the original vendors until they say, "Nyet".

They may say that it's too old and has rolled off of their system. Or they may not. Some might work with you, and some might not. You won't know till you ask.

I used Annual Credit Report and that's where I found these debts and the collection agencies are listed. How can I find out who the original vendors are?
Thank you

[Nutria]

I used Annual Credit Report and that's where I found these debts and the collection agencies are listed. How can I find out who the original vendors are?

Oh, it doesn't mention the original vendors? Gotta call the DC, then. Obviously.

What about the ones you say you've already paid. Are they listed as paid?

[amastewa93]

It seems like it is so easy to get into debt but so difficult to get out. I totally understand! I was in the same position last year and needed to pay off debt (quickly). However, I think that trying to figure out the original vendors, as Nutria said, would be the best option. They are more willing to work with you on payments, etc.

[PhilDanley]

Contacting Collection Agencies

Hello Thomas. What is your overall intention? Can you afford to pay these off?

If these debts are years old, they may be getting close to your state's statute of limitations, which dictated how long the collection agencies have to take you to court to collect these. If you contact the agencies, you run the risk of starting the SOL clock all over again.

If the original creditors have charged off your debts to a CA, you'll get nowhere talking to the original because you're no longer on their books. And the CA can use this contact to reset your SOL.

Since you sound like you want to pay these off then you can contact the CAs from your credit report. The report should show the original creditor with a $0 balance (because the debt has been charged off) and elsewhere the CA with the account and the current balance.

Please message me privately and I can send you some info on charged off debts. Also Google your state's SOL to see if you have "run out the clock" on being taken to court. This may impact your decisions. Paying off debt will improve you're credit score but your score will also improve if these debts drop off your credit report (which federal law requires after 7 years).

[thomasm]

Hello Thomas. What is your overall intention? Can you afford to pay these off?

I can afford the debts, yes.

If these debts are years old, they may be getting close to your state's statute of limitations, which dictated how long the collection agencies have to take you to court to collect these. If you contact the agencies, you run the risk of starting the SOL clock all over again.

I live in southwest Pennsylvania and found this with a Google search:

https://www.ehow.com/about_7534714_pennsylvania-statute-limitations-debt.Html

It sounds as though there is a 4 year window for collection. But when does that 4 year window start? Is it the date of the last payment received by the original company? Or does it start when the collection agency buys the debt from the original company?

does anyone know how this works please?

[PhilDanley]

When does SOL Start?

It starts on the due date of the first missed payment. It doesn't restart when the collection agency takes over.

Are you planning to pay them in full or are you looking to settle for smaller amounts?

[thomasm]

UPDATE
(this is an update of my situation)

After pulling my credit report a few days ago, I found that I have 5 outstanding debts. I am hoping people here can help me best understand how I should handle this situation to clear up these issues, pay the debts and move forward with my financial life.

I live just outside pittsburgh, PA. if anyone is familiar with PA debt laws.


Of the 5 debts, the largest is about $1,200 and is for a student loan payment. This is one I am fairly sure is mine and is currently in collections. the "Date opened" is Sept 2014 and it says it has been "reported since" Nov 2014. Should I call the collection agency and pay this debt or is there a better way to handle this?

2 of the; 5 debts are for utility bills from an old apartment. I thought I ended all utilities when i moved out but i have no proof of ending them and I am not sure how much of these charges are costs that i owe or costs that took place after I left the apartment. The same collection agency is handling both of these two debts. One is for $800 and the "date opened" was Aug 2012 and the "reported since" date is Feb 2015. The other one is for $600 and the "date opened" was Aug 2013 and the "reported since" date is Feb 2015. I moved out of this apartment roughly Feb 2012.

the final 2 of 5 are also held by the same collection agency. These also share the same creditor "the world financial bank network". This bank is one i am unfamiliar with and am unsure if these are my debts. One is for $300 and "date opened" is Oct 2012 and "reported since" Dec 2012. The other is for $200 and "date opened" is Dec 2012 and "reported since" March 2013.

None of these groups are currently calling or mailing me any information, nor requesting any payments of any kind. I want to clear up all 5 of these issues, but I don't want to make any mistakes along the way. If anyone can help, I would be very thankful. If you need further details which I did not provide, please ask.

[thomasm]

It starts on the due date of the first missed payment.

None of these accounts have been paid, at almost any point, based on my memory. Had I known about these debts prior to checking my credit report, I would have paid them. I simply did not realize these debts (and again, at least 2 I was unaware of and 2 others were utility bills I thought I canceled). Is there a potion of the credit report showing the last date I missed a payment? I cannot find that information. All I can see is that collection agencies now have the debt and I have never paid any of the collection agencies listed on this credit report, but i cannot see a lack of payment prior to the collection agencies taking on the debts.

[Jluke]

What is your credit score?

[thomasm]

What is your credit score?

I don't recall, it's very low. That's what triggered me to check the report. Is it important for me to get that to fix my reports?

[Jluke]

It doesn't sound like any of the debt collectors have contacted you so I'm a little confused there.

Being proactive could backfire on you as someone else suggests and I've read another situation on here where that backfired on someone.

It is good to know you can afford to pay off these debts, however, you may even be able to negotiate a lower payoff amount.

Depending on your level of comfort you may want to seek professional guidance on this matter. or do a more thorough internet search for definitive answers.