7 Signs Your Credit Card Debt Is About to Implode

In January 21, 2013

7 Signs Your Credit Card Debt Is About to Implode (via Credit.com)

As we move into 2013, U.S. consumers are carrying balances exceeding $850 billion on approximately 600 million credit card accounts. This is down from the peak of more than $950 billion during 2009-2010, but credit card debt is still the third largest component of household indebtedness, behind only…

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  1. I have 5 credit card charge off’s from 5 different companys.the charge off’s are 5 years old now. I was thinking of buying a house, and I’m not sure if I should wait out the next two years till it falls off my credit report or pay it off, I have the money to pay it now. But I,m not sure if that will hurt me or not.

    • Dave, the answer would depend partly on whether you are past the legal SOL period for CC debt for your state, but generally speaking, it’s not going to yield a significant boost in credit score to pay off a 5-year old set of claims. It certainly will not hurt you to do so either. The key question is whether a mortgage lender will reject your application because of these old debts. You’re past the informal 3-year rule for application of a new mortgage after a major negative credit event like foreclosure or short sale, but lenders will still count these as debts you owe for the purpose of calculating your debt-to-income ratio. I suggest you sit down with a mortgage broker and get their opinion after reviewing your figures.

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