Just got dealt a low hand (wife's old CC from 5 years ago)

First of all, I highly recommend getting into the habit of checking your credit report 2-3 times a year. It's free. There's no reason why a debt should remain undiscovered for five years.

Second, I doubt she really forgot she owed the money.

Third, as to what to do now. The debt is five years old and the damage to her credit is done. Plus there is nothing a debt consolidation firm can do that you can't yourself. Basically it's just a matter of calling up the card issuer and negotiating it down as much as possible. A $3500 debt is chump change for them so you can probably knock it down quite a bit for a debt that old.

Another possibility (maybe, I don't have experience with this) is that you might be better off just ignoring it. After 7 years from the date the account was closed you can call the credit reporting agencies and they have to take it off the record. That's only two years away. At least I think that's how it works but someone else might think I have it wrong.

If you get them to settle for less money the difference will be reported to the IRS as income for you so you will owe taxes that. If it were me and this was 5 yrs old, I would ignore it for two more years.

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You might be better off just ignoring it

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It's true that the debt remainis on your report for 7 years from the date of the delinquency.

Any activity, including phone calls, letters, small payments, etc. resets that's 7-year clock.

The older a delinquent account is on your report, the less it impacts your score.

Now, I speak from experience here. But my experience is on a 'debt' that I disputed. An apartment complex was shady when I moved out during undergrad. They told me I ruined the carpet and sent me a bill for $1300. I refused to pay, they sent it to collections and it showed up on my report. I left it there for 7 years and after the 7 years, it fell off my report. It did ding my credit pretty hard, but my score steadily increased over that period.

If she ligitimately owes the debt, you should consider what the right thing to do is.

Ignoring it may be more detrimental. The CC company could take it to court and get a judgment against her. The judgment then has up to a 10 year statute of limitations on collecting, depending on the state.


Plus, the 7 year clock starts from the last activity on the card. It may not be just 2 years of ignoring/waiting.


If you have the means to pay it, I'd at least contact them to attempt to settle for less. But I wouldn't just ignore it.

If its been 5 years, offer them $500 or tell them to go to hell.

If its been 5 months, pay it.

I'm not sure if Texas or Louisiana law would apply here, since she opened the card while in Texas but is now living in LA. I'll defer to the attorneys on that one.

What's probably happened is the original creditor decided not to sue for that amount, it wasn't worth it, the debt has been sold a bunch of times and now a collector has it that figured out she live in Louisiana, and has tracked her down.

If there is no chance of a legal judgement because the SOL has run, I think you have two options:

1) Completely and utterly ignore it.

2) Offer them a few hundred bucks, buy only if they will do a pay for delete.

Don't do a damn thing. It will fall off your credit in 2 years.

Although the whole credit rating business seems to be shrouded in secrecy, I've read that if you pay off an old credit card debt, THAT will hit your rating and stay on your credit history even longer than (at this point) you just didn't do a thing.

You should, however, check your state's statute of limitations on credit card debt. It can run anywhere from 3 to 10 years.

HERE is a state-by-state breakdown. Credit cards are in the far right column as "Open".


ETA: Just read the rest of this string. Whether it was in Louisiana (3 years) or Texas (4 years), the statute has run. If you pay it off, you'll start the 7 years on your credit history all over again. Just let it fall off. Whatever you do, DO NOT engage in negotiations or acknowledge the debt in any way - you may start the 7 years all over again.

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I suggest your wife take some responsibility for her actions and pay her f'n debt.

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That's a part of being an adult. If you feel the need to "rescue" her then do it.

I have no advice that hasn't been offered above, I'm just curious - what is the underlying balance that she actually charged to the card? I'm guessing a lot less than $3500.

First thing to do (IMO): Consult a legal service which can advise you on which state's laws would apply. Then check the statute of limitations on credit card debt for that state. Now, you really know your options.

Question: has she not had a credit report pulled at any time over this period? I'm not taking a swipe at your wife, but it seems unlikely that someone would completely forget about a significant card balance. But whatever the case, I'd say your options probably involve a lump sum settlement for a few hundred dollars or paying zero and riding out the SOL.

Let your conscience (and the law) be your guide.