Best Way To Handle Old Credit Card Debt?

I have some old credit card debt from my college days (probably going back 4 years) that I have started to receive collection notices for. I'm in a better financial situation now, by no means rich, but I would like to clear my name and not be handcuffed by my prior situation.

What's the best way for me to handle this? I got a letter offering a "one-time only" payment to a collection agency at about half off, which is very attractive, but I want to make sure that I'm both clearing my conscience and boosting my credit rating. If I can do that and pay less than I theoretically owe (considering most of it is probably finance charges), all the better.

For the record, I have a couple of open accounts that are perfectly clear. I've looked into it a little and the state I lived in when I opened the account has a six year statute of limitations.

Looking for solid advice as I'd like to buy a house in the next couple of years.

Bad credit can affect many of the opportunities you have in your life, from your ability to purchase a home right down to your ability to rent movies. Today, Americans are finding themselves more in debt than ever, and many do not know how to go about fixing their financial reputations.

Most of the financial woes of Americans and bad credit can be attributed to credit card bills. Many American consumers and their families are being dragged into (or deeper into) financial holes because of their uncontrolled spending on their major credit cards. When it comes time for the credit card debt settlement, they find that they overextended their means and are not able to settle credit card debt. The research on this subject is astounding:

Studies have suggested that on average, an American household will have monthly due balance around $8,000, including both credit cards and student loans. The problem with this accumulated debt is the interest. As the debt sits whiteout getting paid off, the interest accrues and the per month payments go up. Soon enough, many consumers find themselves paying more to the interest on their debts than on any other household expense. Many suggest that the only escape from this financial purgatory is to look into options such as credit card and debt consolidation. Read more about your credit card debt at: http://www.card-gallery.com/article/178,...

My recommendation is to discuss with the credit card company for waiver of fees, interests, etc.. Once both sides are agreeable, pay up and move on. Your credit score won't be cleared so soon but eventually it will since it'll be a couple more years before you buy a house. As for using the services of a collection agency, I suggest you read all the fine prints before you sign on the dotted line. There could be a catch.

Another company can buy an old debt and reopen collections. Some of those deals for half off the debt do work and it will still be on your report but will show as paid and that looks better on it than an unpaid debt.

Check the offer very closely. If it is that the account will be considered completely settled and that will be the end of it, I would take the offer.

Pull your credit report and see who owns the debt.
Try to deal with them first or let them tell you where the debt was sold.
In all honesty, I would probably wait the few years (depending on how much it was) and donate that amount to your favorite charity (which will clear your concience). Since you currently have a few open accounts, it is clear that not alot of 'stock' was put on the older ones....why start the harrassment process all over again.

if they are giving u deals then take it, and it will be paid off, so now pay off as much as u can with your bills, and make sure u pay your bills on time.. Good luck

I would suggest you to join a debt settlement company who will negotiate with the collection agencies too and reduce your principal debt by around 30% to 70% depending on your credit cards.

You can make affordable monthly payments and get out of debt within 3-36 months. There are no hidden costs and upfront fees associated with the monthly payment options.

Check out this debt settlement company who helped me out with the unsecured debt situation.

http://www.debtfreeafterall.com

Good Luck