Hi Guys,
When I was younger (just out of high school) I made some stupid mistakes by thinking that since I had a nice job that paid well I should drive fancy cars and spend like crazy. Needless to say I got myself into some debt collection issues and finally a voluntary reposession after a layoff in the IT market. After this incident, I cut all my cards, canceled the accounts and bought payed off vehicles for the years following. This led to basically no active credit activity for quite awhile. The debts would be considered small (under $5K total for everything).
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I have matured over the years, now run my own business, and am taking the time too truly learn and care about managing my credit and setting goals to see greener pastures along the lines of interest rates. I have one vehicle loan that is about 18 months old with perfect payment record. I opened my first credit card account last month that I have had in years. I don’t need the credit card, but was told it would be good to show that I have some small activity, but pay on time.
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My question has to do with the fact that I have most of my collections (8 total) dropping off within the next year or two, including the voluntary repo. I have started to get quite a few offers to settle these accounts for pennies on the dollar. Should I pay them or will this start entire 7 year process over again? I am one who is now committed to paying all outstanding debts and would love to do this, but I also don’t want to shoot myself in the foot for another 7 years. Even paid in full these are small amounts (a total of $2,816), minus the voluntary repo ($10,582).
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One other quick question, I was told that reposessions have been extended to remain on your record for 10 years now by a local finance office at a dealership. Is this the case?