News 13, the Morning News and scnow.com are committed to helping you make ends meet. Along those lines, we will be bringing you a regular series of online question and answer chats called Ask An Expert.
Ask your budget and credit counseling questions during our Ask An Expert online chat Wednesday. Toby Smith, a certified budget and credit counselor will answer questions.
(This chat is no longer active, however we will offer another opportunity to have your questions answered soon.)
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8:25 a.m.
Robert in Myrtle Beach asks ...
I have a credit card that I defaulted on in 2002 because when I left the Army, I took a huge cut in pay. I spoke with someone at Wachovia and was seeking information on how to pay down this credit card debt. They told me since the card was defaulted on in 2002, several years ago, that if I tried to pay it down, that would be considered new activity on my credit report and that I should just let it stay in default because it will come off my credit report in 2011. Is this the best advice?
the advice you received is correct. In the credit world, old things have already done their damage to you, it is best to let it go. Focus on the items in the past 2 years.
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8:27 a.m.
Andrea in Myrtle Beach asks ...
If you have an account that is turned over to collections, should it show up on your credit report twice? Once as the collection agency and again with the original company?
There is a chance that the item will show up twice -- it can remain in collections from the original creditor until it is charged off. Then, if the debt is sold, it can pop up again with the new debt collector. Congrats on being so focused on your credit report.
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10:44 a.m.
Sherry in Laurinburg asks ...
If the credit card company sold your past due account to a collection agency, is it true that you don't owe the credit collection agency because you never really entered into an agreement with them in the first place? I read this in a book.
The fact that you don't owe the collection company doesn't negate the debt or the impact on your credit report. We are concerned about your credit and the best way to improve that is to pay your bills on time and to clean up those collection accounts. In the long run, you will be glad you did.
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