Seven year old charge offs

I have several negative charge off items that are reaching their seven year mark, trans union says it will go to a positive on the specified date. What does that mean? Can I request all my negative charge off items that is seven years old to be deleted?

By law, the statute of limitations expires when they are 7 years old. That is 7 years after last activity, not when they were first reported.

Once the 7 year anniversary date has expired, you can and should request that they be removed from your credit reports.

If you pay on them or even promise to pay on them before the expiration date, the clock will start all over again. Make sure they expire before you ask for them to be removed. I would give myself a week cushion just to be on the safe side.

Re: Questions Regarding Pending Repossession

Sell the car. If you repo it, your credit will be badly dinged, you will still owe the balance of what the bank doesn’t get when they sell it. Sell it and you are ok. This is a very hard predicament, and one I can relate to. We were $4,000+ upside down on the loan vs. value; bank took the car; our credit got dinged; we had to pay the bank for the difference; and it took two years to get any type of credit again. In hindsight, if I was more proactive, I could have done the following…

  1. Sell the car at a loss and come up with $4,000 (somehow…)
  2. After the repossession, I should have been more proactive in returning my credit to a better state sooner.

Now… I learned my lesson — we don’t ever buy a car new off the lot;

even though we have a nice car with leather interior, it is a 2008 model with 165,000 miles on it (we have had it since 135,000 miles) and it still works GREAT. I take it to the shop for oil changes and brake pads, and the transmission needed replacement over a year ago.

BUT the price I have paid for all of that is a FRACTION (1/3rd) of what a new car would have been. We have smaller monthly payments and hope to get it paid off in 2017! It’s a hard pill to swallow, but it was a lesson we needed to learn only once.

Questions Regarding Pending Repossession

Quick Question: I’m attempting to get out of debt and I currently have a vehicle that I really can’t afford to pay for and get out of debt at the same time. I have about 3 years left to pay on it and I’m not sure if it will help or hinder my progress by doing a voluntary repo. If I turn it back in, it will free up a nice sum of money to help me pay down some debt and get my current bills caught up. I want to be able to purchase a home in 2 years. HELP ! Not sure what to do……..

I’m not 100% certain but I believe that with a voluntary repo the car company takes the vehicle, sells it at an auction and you end up having to pay the difference (between what they got at auction and the amount you owed on the vehicle when you turned it in). Have you tried selling it yourself first? Why not sell the car for what you still owe on it? Instead of repo. Repo will look terrible on your credit report when you go to apply for a mortgage. Then, get a “clunker” – just some basic transportation to get you safely from Point A to Point B that you can pay cash for until you buy your home at least. Then, you can “upgrade” to something a bit nicer. I still would get a decent used car. I am not big on that depreciation that cars do.

I don’t mean to be unkind and I certainly don’t know you but if you can’t afford the car now, how on earth can you afford a home in 2 years? Sounds too ambitious to me. Don’t turn in the car! My ex did that. Everything was fine for a bit. Until the bank notified us they had sold the car. The bank subtracted the ridiculously low price the car sold for from my ex’s original car loan. He ended up owing only a couple hundred dollars less than he did before giving up the car. You see, the bank isn’t looking to sell the car like a car lot. All they want it to be rid of the car.

I know you don’t mean to be unkind and your question is a good one. I can afford the car, it’s just that I would like to get on the path to healthy spending habits and good credit. I purchased this car on impulse and it wasn’t the best decision I’ve made but I’m here now trying to rectify it. See, I had to realize it’s not about what I can “afford” but more so about what I NEED. A car note of about $600/mo is no longer what I can afford or need. I am on a mission to pay off my old debts, catch up my current bills and build a good sound credit history. I’ve got to start somewhere and my mistakes are in the past. I’m not ambitious – just a strong believer in the old adage – “You can do anything you put your mind too”. So, any ideas about whether I should proceed with the repossession or keep the car and have alot less to catch up my other bills?

Public notice in newspaper?

Hello, I will be paying the 3K cost for my husband’s Chap. 13 Bankruptcy. We have two small children, one is disabled, I’m not working right now. I have been thinking of putting a public notice in the paper stating that, from here on in, I will not be held responsible for any debts he may incur. What do you think?? Would this stop creditors from attaching the assets I have left?

I doubt it. If you are married, they will try. BUT, if you can convince him to sign a post nuptial agreement, which it sounds like he might refuse to do so given his recent actions and behaviors, you can then file that with all the credit agencies AND any credit card company he opens an account with stating that you will not be liable for his debts. I would double check and see if it will hold up in your state.

But they won’t get a cent from me as long as I can help it. I’ve paid out enough. I even took a loan of 500 dollars to make another payment. I asked a lawyer I know about this (since it’s really been troubling me, obviously). His reply was “Under the New York Domestic Relations Law a married woman’s property is considered her sole property as if she were not married and not liable for her husband’s debts.”

I don’t know, of course, whether other states have differing laws regarding the property of women. At least I won’t have to throw myself on his funeral pyre (I don’t mean to offend anyone but that is one custom I could not accept, personally.)

Paying off things on your credit report

Hi All! My DH is getting ready to go back to the Marines on recall so we decided to pay off bills since we will be making quite a bit more money. We ran a credit report and saw what all is on there. DOes anyone know how to tell what is most important to pay off first? We are hoping to buy a house in the first year after he gets back. How do i tell what to pay off and what wont really matter?

If your plan is to become debt free you should consider the debt snowball approach. List all your debts by smallest to largest. Pay everything you can toward the smallest and just pay the minimums on the rest. Once you pay it off move to the next one and so on… You’ll find that by the time you reach the last bill your able to pay huge amounts and the snowball has become HUGE!!!

I would advise before you buy a house you become debt free, have $3000 in the bank for emergencies, and at least $10000 to put down on the house. Always get at least a 15 year, fixed rate mortgage.

If you can do all this before you buy, you’ll enjoy the house and won’t have near the stress you would if you bought a house with a lot of debt hanging around your neck pulling you down.

Credit Slips is one of my favorite websites:

This article about Visa’s ad campaign is very interesting. There are many more interesting articles at Credit Slips too. Read all of them if you can. Make sure nothing is late. Make sure to address all “charged off” or “delinquent” debts. They matter to mortgage lenders. Pay all medical bills too.

So even if something has been charged off i should still pay it? I was always told there was nothing you could do once something was charged off.

Things that are “charged off” could have been sold to a debt collection agency. You could call who you owe the debt to and find out who bought the account. But doesn’t that put you in the hands of the unscrupulous debt collectors and re-start the clock on the statute of limitations?

Bill payment

One of the recent conveniences is to use the BoA payment of bills right from your computer. If the creditor one is paying has an electronic arrangement with the bank, the funds, once one authorizes payment, apparently pass in 2 days. If the creditor does not have an electronic arrangement, the bank writes a check and mails it to the creditor, supposedly delivering it within 4 days from when you requested payment.

Well I find that this last one may not happen as promised. I was a bit nervous about setting up my rent payment this way, because it would be of the type of a mail checked. I requested payment around September 28. The software said the check would be delivered by October 4, which is within the grace period. On October 8 I received a late notice from my landlord, stating that no payment was received. I checked my bank account and the bank records stated that the check was delivered by October 4 and the funds withdrawn October 5.

Again I thought I was safe. The landord’s accountant said that the check arrived yesterday, on the afternoon of October 9. It’s as if the bank took the money out of my account and placed it in reserve for a payment, but really the creditor did not receive it on time, and the check was mailed on the 4th. The bank is not a post office, so how can it state that it delivered the payment on the 4th?

Lucky for me, the landlord will not penalize me this time. But delivery of payment on the 9th is inexcusable. If I had mailed that payment myself on October 1, it would have arrived very much in time. I’m going to be careful about payments to creditors that don’t have a financial electronic arrangement with the bank.

I allow 7 days for mailed payments to leave my bank and get to the proper destination. Thank goodness your landlord did not penalize you.

Robert Manning says it all in the title of his book

Robert Manning says it all in the title of his book…. Credit Card Nation. I hear he’s working on a new book called Credit Card World. Yes, this madness is all over!

Watch the video:

On the website where the Barbie toy is there is a You Tube video of Dave Ramsey talking about debt. I am not a follower of his , but the video is very interesting.
He talks how credit cards started with Diners Club, then Bank Americard. He also states some intereting facts about Sears, JC Penney, and Henry Ford. All were against credit. He says how our great grandparents thought debt was a sin.

Boy, have things changed. I agree with Ramsey that debt is dumb. I have been out of debt for two years now. I know the stress it causes and know the peace of being debt free. I’ll never go back to the other way of life.

If anyone is a fan of Pumpkin Latte at Starbucks, about $4-6 a piece, depending on the size you choose, I have news. Today, while my son and I were out, we came across International Coffee’s version of Pumpkin Pie Latte for $2.99 a box. Each box has 15 servings in it. So, I picked up three of them! I might go back for more.
I can have all the lattes I want and it won’t cost near what a seasonal trip to Starbucks will run.

I think it should come with a warning that parents must teach their children about wise money management. Of course the CC Co’s wouldn’t like that. They make their big $$$ from those who max out cards and pay that minimum payment for years and years and years. And the government wants us all to keep spending and keeping the economy goin! It’s a sick world!

If you deposit checks in a checking account

If you deposit checks in a checking account does your bank give you any notification that the funds are not available right away?

I used to bank with BOA and I always got that notice. I no longer bank with BOA and only use USAA. I have talked with a USAA rep who told me my funds are available as soon as I make the deposit. It makes me wonder if these other banks are just using this “hold” as an excuse to maybe charge someone a huge over draft fee if they get the chance.

Surely they have the same technology available to them as USAA does. In this day and age of instant info. It seems this hold is pretty out of date. I am so grateful I can bank with USAA. They are so worry free.

I would have to agree with you on the banks holding checks – the banks should be able to deposit the funds right away. It’s been my experience that while this is a normal practice for the businesses, it doesn’t seem to be that common for personal accounts. Is USAA local or national? I’ve never heard of them.

I work at a bank and if the bank places a hold on checks that are deposited, we immediately let the customer know and when the money will be made available. There still is the circumstance where the audit department may place a hold on item. A hold usually is placed for 2- 5 days depending on in state or out of state checks. The banks are using this system not only to protect the customer but the bank as well from any losses. There is so much fraudulent activity out there (lottery checks, fake online businesses etc….). I hope this gives a better outlook on the banking industry. If you run into any problems with a check that has been placed on hold I would discuss it with your local branch manager and they may be able to release the hold for you.

USSA is for members of the military and their families. They don’t have brick and mortar banks. The main office is in Houston TX. Next best thing to them is a credit union if you are able to join one.

The mainsteam banks are making huge sums of money on overdraft fees. I don’t believe all of these banks are letting their customers know that checks they deposit are not always available right away. If USSA has the technology to make funds available right away, surely these big well known banks have the technology too. They play a got cha game with people and usually those people are not money savvy and are the ones who can least afford it.

What justifies a $40.00 fee ?

I have never had a problem but I know others who have for really minor offenses. It’s nothing but robbery! No wonder so may low income people don’t trust banks. My outlook on the mainsteam banking industry is that they are chomping at the bit to gouge people the first chance they get.

I wanted to share my experience

I didn’t catch the original post by I wanted to share my experience. My brother, DH & I joined Ballys gym in early August 2003. In late September 2003 my DH broke his neck in an bad car accident.

Temporarily paralized, force to break our rental lease and move in with my family, and repossession of our only other vehicle and my brother was also laid off by December and returned to school FT (he was in mid-20’s) we were forced to only pay for necessities and needless to say we weren’t going to the gym. In early 2006 I received an official looking letter from my county court house that were suing me and by the end of the year they had won the case and I now have a judgement against me on all of my credit reports.

The key to my case is that I was never given a court date to appear. Believe me, if I did, I would’ve been there will all of my DH medical records, police report and brothers official “layoff” letters. I did just receive a letter from a lawyer who found my judgement file at the local county clerks office and I am doing some research on him before we meet. The debt amount is now over $3,000 for 2 months of gym use. Yeah, I know I should’ve read the contract better, but we were planning to really take advantage of the gym and work out.

One thing I did learn, NEVER EVER pay with a personal check. Even after this judgement, I live in Texas and we are non-garnishing state meaning the only one that can garnish my wages is the Federal Government. But if they were to have my bank information, they can and will freeze my account until they collect what they needed…information I found out regarding the collection agency Bally’s was using. Can you believe they also sent me a check for $6.57 and needing the money I went to cash it, but after a block away immediately turned around and returned the money and collected the check….it was from that same collection agency, but they had no name on it, just the address. I had realized it was from the same town the collection agency is located in.

Debt is brutal and collection agencies are scrupulous. I found out through an online site regarding “bad banks and companies” that this collection agency is so big they are touted to be the first million dollar collection agency this year. Apparently they have judges under their employment that are paid according to the amount of judgements they make in the collection agencies favor.

No matter how small the amount may be, make it to your court date and explain your situation. Real, fair local judges tend to be more leneant (SP?) to the consumer versus the collection agencies.

They can call all day, no phone anymore

Recently my brother got a letter asking him to court for a credit card debt from like 4 years ago… it was originally like 800 dollars and he had not been able to pay due to a car accident that had him disabled for over a year… they also had charged him insurance on his card and then denied paying it when he needed it as they said it does not cover the self employed… but yet they sold it to him in the first place… anyway the letter was a court summons and it said if he paid like 500 before the court date they would cancel court…

I am not really worried about court either, as if and when they ever get my fiancee to court, hey if the judge wants to garnish a part of his lousy 500 a week take home pay for the rest of his life, let them. What can they take from that? ten dollars? and i think in florida where he will be a resident, i think he may be somewhat protected from wage garnishment…

and wow that is nuts that the new debt company was raking you as bad as the original… geez.

I wonder if they would really take him to court over such a small amount. Does the letter have an actual date to appear in court ? Is it from a collection agency that could be trying to make the letter look like an official court document?

Selling that useless insurance to your brother sounds like another dirty trick I have heard the credit card co’s will try to play.
You may be able to find out more info about wage garnishment in your state by doing some google searches.

I should have been more aware of what was going on with that debt agency I was paying. I was so scared though. The guy at the collection place knew that too and that made it all the more easy for him to pull the wool over my eyes.

There is a lesson in all of this: Fear not! Fear can prevent one from looking at the situation clearly and make a bad situation even worse.

yes it was from our local court I read it myself a real appearance court date etc it said to call if you wanted to pay first and it was like half of what was owed, it had real lawyers local etc.. so someone bought up old accounts and was really going after folks it has been at least 3 years since his accident when he couldnt work and owed that bill… the ones who buy up the old debt probably figure the smaller ones are easier to collect on as some folks may actually pay to make u go away. I m not sure but I think he was going to pay it as he lives 5 states away now and would not want to go to court…. cost more to get there.