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Question: Old debt vs. new debt?

I am 27 years old. I have been on a roller coaster with my debt for about 7 years now. I have some very old debts, (4 years or older) such as a repossession and outstanding utility bills, along with some credit cards. I also have a smaller amount of current debt (2 years or less) leftover from my past marriage (credit card and a couple small utility bills). I want to improve my credit and start paying things off...the trouble is I'm a college student who barely makes minimum wage, so I am not in any position to pay it all off. I need to be thrifty and choose what to pay. I've been told it's better to pay off current debts cuz they affect your credit score more than older debt does, and some of my debts I can actually have dropped from my report because they are 7 years old. I realize in a perfect world I should honor all of my debts, but right now I'm just looking to do what's going to help me in the shortest amount of time. I realize it won't happen overnight.

Answer: Concentrate on the newer debt. The old debts may be beyond your states statute of limitations to take legal action.
The newer debts could get nasty and you might wind up in court fighting a judgment order for garnishment.

Let the old ones drop from your report, they can not be re-dated and placed back on your credit report as this is illegal per the FDCPA (15USC1681s-2] § 623).

P.S. follow Slimick's advice and get rid of those utility bills as this will cause you to have to pay a hefty deposit for services if you decide to move.

Hope this answers your question.
LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

Credit Repair - Credit Score,COLLECTION,Bunkruptcy,Forclosur

Question: I financed a computer for my aunt. She made my credit go from excellent to fair. What can I do to fix it?

I have an aunt with an inability to handle money. My credit was excellent (score around 760). My aunt's husband had a business he ran out of their home and their computer died, so they needed a new one. They asked me to finance one for them and they would make the payments. Against my better judgment, I did it. That was November 2004. Earlier this year I got a call asking why my payment was late. I called my aunt and she insisted it wouldn't happen again. Then just recently, I found out they were FOUR payments behind, the balance was 3 dollars and some change less than the original balance was two years earlier, her last check of $25 bounced, and the account was closed and sent to collections. My credit has dropped over 100 points and gone from excellent to fair. I have transferred the balance to one of my own credit cards and am handling it myself, and hopefully my aunt will pay me. Is there anything I can do to get my excellent credit back?

Answer: Mistake #1. Co-signing for someone and not keeping track to make sure they were keeping up payments.

Mistake #2. Paying off the debt by transferring it to another card. Now that they have their money, you are going to find it extremely difficult to get them to help fix your credit.

The only way to remove the negative item from your Credit Report is for the creditor to do it. The only option you now have is call them up and explain what happened, and ask if they will remove the negative item from you history. Very little chance of that happening, but it's your only hope.

The only other thing to do is keep up your good credit habits. Eventually it will improve, but it will be a few years.

What is a fair or average FICO Credit Score?