Need help getting started on repaying old debts...

Hi Fusion,

Start paying the smaller accounts. They will be updated with the bureaus and your scores will start going up. Figure out those debts that are added with highest interest rate and fees. The monthly payment will also be quite higher. If you are unable to pay them on your own, consider some debt management program. You will have a lower pay off and pay at lower interest rate. Most fees will be waived off in the plan. Give importance to those accounts that are "recently" delinquent. They are going to stay longer in your report. You need to improve their reporting. Old accounts can wait for a while. If you don't pay, they will be automatically removed from your file in seven to ten years period.

Negotiate with the collectors in writing and keep in touch over the phone. Get the debt validated to make sure that your money will be going to the right place. You need to confirm that they have your file and they are authorized for doing collections.

Welcome to the Community :D First of all, how "old" are your debts? The reason I'm asking is, some of them may well be out of the SOL period, if you are talking about years' old debts. If you haven't already, try talking with your creditors,if not out of the SOL, and see if they are willing to drop interest,fees, etc., if you will commit to a payment, it won't hurt to ask, and it has both worked, and not, for me. If you have any questions, please ask..Karen

I think that I am still within the SOL....speaking of which...what is the SOL for Tn? Also, if I make a payment to the account, does it start over? What about talking to a CA...does that make the SOL start over?

Which is the best route...go about this on my own, get a debt consolidation loan from my credit union or elsewhere...or pay off lowest to largest? I just feel stuck and I want to dig out. Any help would be appreciated.

The latest payment activity renews the SOL period. At this moment, the SOL is calculated from your last payment date. If you make one payment now, it will start over from the beginning. SOL in TN is six years.

I will oppose taking a new loan for paying the existing debts. This will increase your total debt to income ratio and you might face tough time in repaying it. Enroll with a dmp company and make payments to them for all your accounts. They will offer a lower interest rate in the plan. You can do the negotiations with your creditors and arrange a lower pay off. Take the help of DIY section for helpful tips.

Thanks for the great advice so far! Just wondering about debt managment agencies...Like Credit Counselor's of America....most of my accounts are with collection agencies...should I use a credit counseling agency to resolve my debts and make a payment to them? Do you recommend this and if so, which agency do you recommend?

Go ahead and enroll with the dmp company if it's getting hard for you to take care of your accounts. If the collection agency doesn't receive the money from you, they will send the file back to the creditor marking it as "unable to collect". The creditor can take legal steps against you in recovering the amount.

Read the fine print carefully before signing with the DMP company. This will be your only hard proof in case a dispute takes place at the later stage.