Settling old debt question...

**dancemommy** · 08-24-2010, 01:28 PM

We just got a windfall (one that we worked very hard for) and should be able to pay off all of our credit card, hospital, and tax debt. It isn't quite enough to cover all of it at the full amount, but should be enough to settle for just a little less than the full amount (and really the amount owed minus months of overlimit/late fees). Problem is that I'm sure there are things out there that I'm not even aware of and I'd like to make sure I pay off EVERYthing. So, how can you find those "sleepers"? What do I need to know before going for settlements? We got into this mess after a layoff, then years of under employment, and finally a couple of major health crisies. I'm so thankful that things are turning around (I hope!) for us finally and wish that for everyone else out there struggling too. We've been plugging away the best we could for more than a decade and have had our share of bumps in the road, but can't complain too much- we have had many blessings as well- just not financially/career wise. My biggest issue now is that I have a big chunk of money and I am having the hardest time spending it. It needs to all go toward old bills, but after years of not having money I just love the feeling of it sitting in the bank ;-)
TIA!

**Greebo** · 08-24-2010, 01:49 PM

You can pull your credit report free 1x a year from http://www.annualcreditreport.com - all three major credit bureaus participate in accordance with federal law.

**dancemommy** · 08-24-2010, 01:58 PM

I have pulled our credit reports, but I know there are still things that aren't showing up....do I chase down those who aren't chasing down me?

**Greebo** · 08-24-2010, 02:04 PM

I would probably let those sleepers lie. Sooner or later, those old debts will be sold off to someone who's willing to hunt you down for a few bucks, and then you can offer to settle when they wake up.

Morally, yes, you have the obligation to repay - but that obligation was made to a party who long since gave up the idea of collecting and sold his right to collect to someone else, so you're really in "pennies on the dollar" territory with those old debts.