Paying back a defaulted/charged-off credit card will not restore your credit rating..Your credit report will be updated to a "Paid Charge-Off," which, while slightly better, is still a seriously derogatory item. Per the Fair Credit Reporting Act, a charge-off, whether paid, settled for less or not paid at all, will remain on a consumer’s credit reports for up to 7 years….so you’ll be stuck with damaged credit regardless of what you do.

If you’re going to be punished with bad credit anyway…then just sit tight and don’t pay it back…The charge-off will fall off your credit report anyway in 7 years.

Absolutely do not waste your time contacting debt collectors if you can only afford to pay a little every month. Many collection agencies that deal in old charge-offs are highly aggressive, and you might be unpleasantly surprised at how they respond…you could end up triggering abusive collection activity, even legal action against yourself.

If you want to pay it back, save up money to settle at 30% at least and get written settlement agreements first before you pay…again, this won’t fix your credit.You say debt from when you were 18-19 but you don’t mention your age now. If the collectors aren’t contacting you, don’t pay them. It will not help your score at all. Also check your states Statue of Limitations. Most states credit card debt is not legally collectible after 3 yrs. They can still call you or try to get you to pay or even try to sue you because they know most people aren’t aware of the law. If they do try to get you to pay, tell them your debt is non collectible because it is past the SOL. If they try to sue, show up at court with the states SOL and the judge will dismiss.

To start rebuilding get a couple secured credit cards so balance out the negative. Few links below to check your states SOL, detailed info on paying charge offs and secured credit card.

http://creditrepairinfoservices.com/blog/does-paying-charged-off-accounts-help-my-credit-score

http://www.comebackcredit.com/statute-of-limitations-on-debts/

http://www.comebackcredit.com/what-is-a-secured-credit-card/

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