Several years ago, I had 3 credit cards. After having financial issues (job loss and several other unfortunate events), I was not able to keep up with the monthly payments. I stopped payments on all credit cards except few essential loans such as car loans. I have not made any payments on credit cards since then.
Fast forward 6 plus years, I would like to take care of those accounts. To my knowledge, all of them are currently charged off.
I talked to few friends and they mentioned that any payment(s) now would reactivate the Statue of Limitations, giving the debt owners legal right to file a lawsuit. And in the event if I pay them off in full or settle for less than owned, it will stay in my credit report for 10 more years, making both options unacceptable. The third option is not pay anything and wait until they fall off next year from the credit report. If I do not pay, then it would fall of the credit report in 1 year or so; however, I would still be responsible for the debt.
The question here is if I should settle and pay the unpaid accounts now or wait until they fall of my credit report and then negotiate the settlement offer with an understanding that creditors won’t report it back to any of credit bureaus.