Should You Pay Your Old Debts?
If you are interested in improving your credit score and cleaning up your bad credit history, you may be wondering whether you should pay your old debts. You may be like many people who want to turn their bad credit histories into good. Through this article, we will discuss with you the pros and cons in regard to the issue of should you pay your old debts.
Don’t Develop a Blanket Plan -- Be Realistic
At the outset, when it comes to dealing with bad credit and old debts, you will not want to come up with a general policy of agreeing to pay off all of your old debts. There are a number of reasons why a blanker plan to pay off all old debts to better bad credit is not necessarily a solid plan of action.
First of all, the decision to pay off all of your old debts likely is not a realistic plan. If you had the ability to take care of all of these debts in the first instance, you likely would have done so and likely would not have ended up with a bad credit history and a bad credit score. When all is said and done, when it comes to dealing with a bad credit history and a bad credit score, you will want any plan that you develop to be reasonable and one that you actually have a chance of achieving.
Not All Old Debts Carry the Same Weight
If your primary goal is to better your bad credit history and better your bad credit score, you need to come to an understanding that not all past due or delinquent debts carry the same weight when it comes to your credit history and credit score.
When all is said and done, if you want to deal with a bad credit history and bad credit score, you will want to closely evaluate each of your old debts. If you have old debts that are so old that they will soon be dropping off of your credit report, you will want to consider seriously not taking the time and making the effort (and spending your money) dealing with this debt. Of course, you may feel morally compelled to pay off all of your debts. But, when the issue is how different older debts impact your credit, you need to understand that these old debts do have different degrees of impacts on your credit history and credit score.
Negotiate Compromised Settlements of Old Debts
Rather than spend all of your available funds in dealing with old debts, you might want to consider working with these old creditors to obtain a negotiated and compromised settlement of these old debts. In other words, as part of your overall plan of dealing with a bad credit problem, you will want to contact creditors with which you have old debt and see if they would be willing to accept a compromised settlement of the account in question. You would offer to pay a certain percentage of what is due and owing to have the entire debt discharged.