“Old Debt May Not Just Fade Away”
Hi Joe, I appreciate the credit report that you sent me. I reviewed the items that you marked that need to be settled. One of the collection items is for an old obligation that must be 10 years old. I thought these items can only stay on my credit report for 7 years?
I let this client know it isn’t that simple, as the 7 year meter starts all over again each time the original creditor sells the obligation. I have also seen where some collection companies resell the obligations again and again. One good thing is that each time it is sold, the better chances to settle the obligation at a lower dollar amount.
The main reason these obligations should be settled sooner rather than later is that they almost always report to the credit bureaus on a monthly basis and each time that it is reported, the lower your credit scores can get.
Image courtesyj of stuartMiles/freedigitalphotos.net
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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