How do u Clear up your Credit

PHILLY,PA: I have around 10,000 in bad debt and a repo. My mom is willing to get me a loan to pay off the bad debts. But I have alot of questions here... Once they are paid in full will they be removed from my credit report and how long will it take? If not what can I do to have them removed since I already paid them? If they are not removed but paid in full will I still have bad credit? Need some advice here because what is the real point of paying these debts off if they will still be on your credit report showing late payments and stuff for 7 years. Why not just save yourself the money and wait out the seven years? Any information on how to go about this would be appreciated. Thank You!

[I AM ALWAYS LIABLE]

Originally posted by CHAP
PHILLY,PA: I have around 10,000 in bad debt and a repo. My mom is willing to get me a loan to pay off the bad debts. But I have alot of questions here... Once they are paid in full will they be removed from my credit report and how long will it take? If not what can I do to have them removed since I already paid them? If they are not removed but paid in full will I still have bad credit? Need some advice here because what is the real point of paying these debts off if they will still be on your credit report showing late payments and stuff for 7 years. Why not just save yourself the money and wait out the seven years? Any information on how to go about this would be appreciated. Thank You!

My response:

YOU ASKED:

"If they are not removed but paid in full will I still have bad credit?"

MY ANSWER:

Yes.


YOU ASKED:

"Why not just save yourself the money and wait out the seven years?"

MY ANSWER:

Because, if you don't pay your debts, you will more than likely find yourself repeatedly in court, being sued numerous times, by all of your creditors. Additionally, the interest keeps mounting, and you wind up paying for costs of collection, costs of court, attorney's fees, and have judgments against you on your credit report - - which are worse. Then come the garnishments on wages, etc.

Good luck to you.

IAAL

PA: So, if I pay I'm screwed and if I don`t pay I'm screwed either way I feel as if I can't win. I am self employed anyway so the wage stuff doesn't really matter to me.Can I call the creditor and agree to pay what is owed only if they send me out a letter saying that they will completely remove their account from my credit report as if nothing ever happened. Maybe, have it signed and notarized. Will they agree to something like that? Otherwise, I'm willing to wait out the seven years until this think blows over!!

I agree with the other person who responded to your post. It is my personal belief that if you pay off these debts, the delinquency history will remain. However, it WILL indicate that you have satisfied the debt. In order to re-establish or improve your credit, you must show the ability to pay your bills on time continuously for approx 6 months.