Thank you Raquel! And Raymond! - and Monty - great place you have here - thank you especially for the opportunity to think all this stuff through with you all!

He actually did see a credit counsellor, about a year ago now, and even after he provided her all the info, and asked for her help - she kinda dropped the ball - didn't call him back. Since then, the largest issue he was dealing with has been resolved, and his plan now is to seek advice from a friend who would also be considered professionally a bona fide 'trustee' of some sort. (his friend may well send him back to the counsellor though!)

We're both interested in the ramifications for future planning though -

So I gather - "orderly payment of debt" is a technical term to describe a formal agreement he could reach with his creditors in consultation with a trustee or credit counsellor to pay outstanding balances?

Can he also assume that items paid in full now will also be considered "orderly payment of debt" (i.e. and so be off his report in three years instead of 6?)

The most interesting R9 item - the one with no balance showing, as it turns out was infact paid off 4-5 months ago - but it still says 'written off' (so I guess he should be asking for that to have 'paid' beside it too) - and presumably that should disappear in 3 years too?

...It was 4 years 'old' at the time of payment - is it too much to hope it will vanish in 2 years (total six) ?

I guess I'm asking you to gaze into your crystal balls!

Hi,

If you're trying to get rid of your debts, it's better to see a Credit Counsellor or a Trustee. There are other options where you don't have to deal with your creditors directly and still make reasonable payments to them.

Should you be interested as to how to deal with your debts, please do not hesitate to phone me at 416-624-2193 or 416-498-9200.

Kind Regards,
Raquel

No, Monty, it's the opposite. Whether they are payed or not will NOT change the date of last activity.

On the Equifax reports only, the 3 year period refers to the completion of an orderly payment of debt agreement.

Ray

if you make a payment on those old accounts, then they will start the clock as current. This means.... don't pay the old accounts...

As raymond said, they will stay on your report for six years from the date of last activity.

It's best to keep the current debt current if possible.

Thank you Very much Raymond!

with the info you've offered, I've re-examined things -

Here's what it looks like to me now:

He has only one account that is less than three years - This month! - and that's still with the original creditor - if he pays that immediately presumeably that will come off his report in three years?

The ones that have been "written off": two are 2004, - I don't know what to do about them - one has no balance showing. The third, dated 2006, to the best of my understanding, was written-off in agreement with the lender after re-couping a considerably larger sum on another loan they ranked R1.

The Credit Agency one - it crested three years last month - should he try to negotiate with them?

Thank you very much again,

Scallop

See my Nov.11, 2008 post on the "date of last activity" definition used by the 2 credit bureaus in the link below.

/threadview/1415.html

An R9 or most other negative info will stay on your report for 6 years from the "date of last activity" whether you pay it off or never pay a penny on it. They just get marked as paid; but if the account was sent to 3'rd party collections or sold to a debt buyer, it's confusing, but the same item may also appear in the "collections" sections of the credit reports.

See Page 8 of the 18 Page of the FCAC pdf document below. Better still, download and read all of it.

http://www.fcac-acfc.gc.ca/eng/publications/CreditReportScore/PDF/CreditReportScore_e.pdf

The FCAC guide also discusses rebuilding your credit. It takes time and good payment patterns. No shortcuts or magic solutions.

STAY AWAY FROM CREDIT REPAIR OUTFITS WHATEVER YOU DO. AT BEST, THEY ARE WORTHLESS AND RUN BY IDIOTS TOO LAZY TO GET A REAL JOB.

Ray

I hope somebody here can give us advise!

After paying back those near and dear to him, my partner is trying to repair his bad credit rating. (which like so many I'm sure - happened during extreme circumstances. . . .

He has a half dozen R9 items:

some also say : "written off".

one item was "assigned for third party collection"

and a couple also rated R9, just show balances owing.

(....as well as a couple items he was able to keep current that show R1 and I1)

How he should proceed? If he pays old balances, will the "R9" designation then be improved? I'm getting the impression that it won't - and I'm also wondering (worrying!) - that if he pays them - that his six years to clear might begin anew on the date paid?

We'd be very grateful for any advise you might offer on how and where to begin a recovery program.

Best regards,

scallop