Old debt vs. new debt?

Question

I am 27 years old. I have been on a roller coaster with my debt for about 7 years now. I have some very old debts, (4 years or older) such as a repossession and outstanding utility bills, along with some credit cards. I also have a smaller amount of current debt (2 years or less) leftover from my past marriage (credit card and a couple small utility bills). I want to improve my credit and start paying things off...the trouble is I'm a college student who barely makes minimum wage, so I am not in any position to pay it all off. I need to be thrifty and choose what to pay. I've been told it's better to pay off current debts cuz they affect your credit score more than older debt does, and some of my debts I can actually have dropped from my report because they are 7 years old. I realize in a perfect world I should honor all of my debts, but right now I'm just looking to do what's going to help me in the shortest amount of time. I realize it won't happen overnight.

Answer 1

Concentrate on the newer debt.  The old debts may be beyond your states statute of limitations to take legal action.

The newer debts could get nasty and you might wind up in court fighting a judgment order for garnishment.

Let the old ones drop from your report, they can not be re-dated and placed back on your credit report as this is illegal per the FDCPA (15USC1681s-2]  Ã‚§ 623).

P.S. follow Slimick's advice and get rid of those utility bills as this will cause you to have to pay a hefty deposit for services if you decide to move.

Hope this answers your question.

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 2

Hi,

I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:

http://yatuc.com/bid

Answer 3

Your best bet would be to start with the utility bills by making Pay for Delete offers...where they promise in writing to remove the items from your credit report upon receipt of the agreed to amount.  Get all terms in writing first....never give them your money first and then go back and try to negotiate getting the items removed.  If they won't give you such a written agreement, there's no point in paying them.

Answer 4

JQ,

There's a good article at eHow on steps to take to begin tackling your debt.  Take a look at it:

http://www.ehow.com/how_2326032_avoid-es...

How to Stop Escalating Debt

You can also look here for tips on earning some extra cash online:

http://www.ehow.com/how_2254361_money-in...

How to make money on the internet, scam-free

Lastly, here's an interesting alternative to conventional lending...getting a "social networking" loan from Virgin Money (from the same folks who run Virgin Airlines):

http://www.ehow.com/how_2310995_student-...

Social Loans from Virgin Money

Hope these help.