Can buying help

[SmokinwithWilly]

Debts don't just vanish - they have to be paid or settled. If the debt is a few years old or if that particular creditor has had the debt for a long time, it may drop off of your report until they sell it and the new owner of the debt comes calling. Then the cycle will start all over and you'll have another negative on the report. There may come a time that the collector can no longer legally sue you, but an unsettled debt is almost always eligible for collection.

After a certain amount of time, creditors are no longer allowed to pursue the debt. I believe it's 7 years average. Not to say that it won't stay on your credit for a little while. Also, contact Experion, Transunion and Equifax and see if they have anything on your report that needs to be removed. I am currently dealing with a situation like this. Somehow a foreclosure on a house I have never owned or lived in is on my credit. You can challenge things reported if something is a mistake and you have proof. 

 

As someone said earlier, get bad debt out of the way to fix your credit and start putting the money you would pay into a savings account or a short term investment so you can't touch it for perceived emergencies. In 30 months at the same payment you would have the full asking price. 

 

As far as the vehicle goes, start shopping around online, up to 100 miles or so. Start getting prices for comparable vehicles and have the list prices with you when you walk into the dealership. Then you have fighting material to force a better price. And the biggest thing is, be ready to walk out if they won't give you the price you think is fair. Remember, these guys work on commission, so they want to sell you a car. 5%(or whatever they get) of 85% list price is a whole lot more than 5% of nothing. 

 

It feels weird the first few times you start haggling for a better price, but once you get used to it, you'll do it all the time. You'll be amazed how much you save getting an extra 10-20% or more once you start negotiating. 

[KSpan]

After a certain amount of time, creditors are no longer allowed to pursue the debt. I believe it's 7 years average.

Incorrect. If a single creditor or collector owns it long enough they lose the right to sue, but there is no limitation on collection. Collectors may eventually stop trying, but it is never illegal to attempt to collect a valid debt.

From the FTC.gov website: https://www.consumer.ftc.gov/articles/0117-time-barred-debts

The decision to pay a time-barred debt is up to you. You have options, but each one has consequences. Consider talking to a lawyer before you choose an option.

1. Pay nothing on the debt. Although the collector may not sue you to collect the debt, you still owe it. The collector can continue to contact you to try to collect, unless you send a letter to the collector demanding that communication stop. Not paying a debt may make it harder, or more expensive, to get credit, insurance, or other services because not paying may lower your credit rating.

Agree with the rest of the post, as it is sound advice.

[SmokinwithWilly]

Not my personal experience. I had a debt that reached the time limit for collections. After the limit expired, I called all 3 major credit reporters and they pulled the debt from my credit report. 

[KSpan]

Not my personal experience. I had a debt that reached the time limit for collections. After the limit expired, I called all 3 major credit reporters and they pulled the debt from my credit report.

Pulled it from your report, yes, but that does not mean the debt is actually resolved; you need a settlement statement in writing from the creditor to establish that. If someone else ever buys the debt (assuming it's unsettled), they can attempt to collect and it will appear on your report again as a new transaction, because it is, and the clock will start again.

That said, the new collector would have to establish proof that you actually owe it, and if they can't then you don't have to pay them and their claim is null. However, unless the debtor gets something in writing saying the debt has been settled you'll never be 100% sure it won't surface again.

[SmokinwithWilly]

From what I remember, since it's been a while, I challenged the debt to all 3 reporters. They did whatever they do when items are challenged and later contacted me and told me that the issue was considered resolved and that they could no longer pursue me for the debt. It's very possible I got some misinformation from them, but that's what they told me. 

[KSpan]

From what I remember, since it's been a while, I challenged the debt to all 3 reporters. They did whatever they do when items are challenged and later contacted me and told me that the issue was considered resolved and that they could no longer pursue me for the debt. It's very possible I got some misinformation from them, but that's what they told me.

It's either because the debt was considered settled by the debtor and they didn't send you ppwk/you lost track of it or they did not have sufficient documentation that you owed it/failed to respond to the inquiry. Time has nothing to do with actual legal settlement of a debt, only the conditions under which it can be reported to a third-party credit bureau.

[SmokinwithWilly]

It's either because the debt was considered settled by the debtor and they didn't send you ppwk/you lost track of it or they did not have sufficient documentation that you owed it/failed to respond to the inquiry. Time has nothing to do with actual legal settlement of a debt, only the conditions under which it can be reported to a third-party credit bureau.

I stand corrected. Thanks for the elaboration. 

[PandaPancake]

I'm going to direct you here: http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit

[Hawk]

the thing with buying a can really comes down to fit...I mean...too small and the boys will be getting squished constantly and that can't feel good...too big and it's going to move around and leaving you potentially at extreme risk for major damage.  Try before you buy...good luck, keep your stick on the ice.

[KSpan]

I stand corrected. Thanks for the elaboration. 

 

It was a good discussion and relevant to someone buying a car.  The whole structure and processes, intentional or not (I have my opinion) of the credit industry is confusing to people, leading to scenarios like what the OP is facing. The best thing is to clean up the mess and just stop playing the game.  

 

JOAT - as has been mentioned, start checking Craigslist and Autotrader (I like their search better than Cars.com) for a few select older models in a big radius as well as your own vehicle.  You'll quickly get an idea of what market value for different vehicles are, and you'll also get a sense of what might be too good to be true.  If you continue being patient, I think you'll be very pleased and surprised with what you can afford without debt.

 

BTW, what is the current vehicle you're thinking of trading? 

[SmokinwithWilly]

Also, if you plan to sell your current vehicle rather than trade it in, start putting some shine on that old penny. Clean the upholstery, throw on some armor all, get a few coats of wax on it. If possible, get some degreaser in the engine compartment and clean that up too. If you smoke in it, stop. That smell is really hard to cover up. Also, clean the interior glass really well. I double up a terrycloth towel on my orbital sander. You might be able to get $1000-$2000 more just based on the curb appeal. That's what a dealer is going to do when they get a hold of it. 

[Jackofalltrades]

Well it's done. I satisfied the SECU condition and got the 4.75 rate. My payment is 157.00 less than it was when I started the process AND I wiped off the remaining negative entry on my credit. I have some small medical collection to take care of now and with time I'll have a clean slate.

The car I traded was a 05 PT Cruiser that I hated and it was creeping up on 100k miles.

Got the wife a 08 Sienna and she's happy, which is really the goal.

I appreciate the advice and I am more determined than ever to clean up and maintain my credit.

[Panthro]

This is great

[Jackofalltrades]

Thank you, sir.