Best Thing to do with this debt

[greginky]

Okay, yesterday I joined Identity Guard to monitor my credit. I am just starting out and my scores are around 508 on all 3. I have a credit card I defaulted on 2 years ago. I think I owed like $350 as the high credit limit, but they want $788 dollars now. This will stay on my report till 2014, so I don't want to wait it out or dispute it especially since it is still in the SOL for my state. I am trying to figure the best way to take care of it other than just give them over a 100% profit. Should I offer to pay it off for $350 ? Or is there something else I should do. Also, can I use the reports I got from Identity Guard to dispute with, since I do not get a report number, only a member number? According to Identity Guard I can use their online dispute method but I hear the best chance is to use the 1, 2 punch, which I read about but am not sure I understand the 2 part very well yet, I did find the thread on it, I know I should send a dv letter to them cmrrr, and when I get receipt that they got it, I was not clear on the next step, the thread left me wondering about that part, it just wasn't quite clear to me. I know this debt is valid, and I don't want to dispute it and risk getting sued or garnished. So, if I offer to pay it what stipulations should I put on there so that it doesn't hurt me credit wise, and should I get it in writing. I opened a secured credit card last week, and I am going to get a TV thru a rental(purchase) place that is a local store, they don't overcharge you that badly compared to the national rental chains. I plan on using the card to make the payments and paying the card off every month. This way I am establishing 2 lines of credit for one fee. It made sense to me anyway. I don't have any open credit. I am currently paying to get student loans out of default, which they will be out of default come August. Then I should have 2 more open lines of credit when they are turned over to regular lenders. I have a few small bills, one for ambulance service and another for x-rays, but I suppose they are both considered medical so I didn't know if I should just pay them off or not, the 2 together are less than $100 total. Any advice would be much appreciated.

[Trish]

The collection SOL in KY looks like 5 years on an open acct (credit cards are considered open accts) so you may want to just wait on doing anything with that one..
You really don't have much leverage on an acct that's still within SOL unless they are either reporting it incorrectly OR the charges/balances are wrong and you challenge it.

You could try contacting them and negotiating it down but there's that chance that they could just be jerks about it and say "nope.....you have to pay it all" and then you do run the risk of being sued if you wake up a sleeping giant.

Some may tell you that you are not likely to be sued for under 1K but I have found that to be false... I was actually served on a fairly small debt (I think it was like $650).. so you should still be careful.

Sorry, I don't feel like helped much.... but you may want to just let that one age a bit before tackling it..
Focus on getting your positive TLs going and dispute any other derogs that are out of SOL and your score will start to go up...

Another TL with a higher CL that you may want to try is Crown Jewelers. They don't pull your credit and pretty much anyone with a job and phone # is approved. They usually give decent CLs like $1500...... all you have to do is purchase something (I purchase a very inexpensive pair of earrings) and make the small monthly payment and they report to all 3 CRAs.

[greginky]

Thanks for responding Trish. I think that this is what I am going to do. If things go according to plan , then about Sep or Oct this credit card will be the only negative left on my report, unless I get laid off or something. Then I will try the 1 2 punch on it, if that isn't successful then I want to make sure before I try that , that I am ready to pay it off in full. I didn't want to leave it on there that long, but it sounds like my best plan of action. I appreciate your help.



Greg