How to Pay off Your Delinquent Credit Cards

Paying off delinquent credit cards could help improve your credit score and end collection calls from debt collectors. Paying off the delinquent accounts makes sense because otherwise the debt won't go away. State statute of limitation laws limit the length of time debt collectors have to sue you in court, but you'll remain liable of the debt even after the statute of limitations expires. That means debt collectors can legally pursue you for decades for an old debt.

Instructions

1

Review the amount of cash you have to devote to paying off your credit cards through either lump sum payments or installments. Then review your credit report to see how much you owe on each delinquent account. Order your credit report from Annual Credit Report.com, a website established by the major credit bureaus to offer free credit reports under the terms of the Fair Credit Reporting Act. View and print your report from the website.

2

Make a list of the delinquent accounts and the respective contact information by reviewing your credit report. Then prioritize the debts in the order that you would like to pay them off. How you rank them is up to you. You could rank them from the smallest balances to the highest. Or you could rank them according to the current level of collection activity. Under that scenario, debt collectors who have been harassing you day and night or threatening legal action should be placed at the top of your list, with other accounts listed below.

3

Call the proper contact for each delinquent account. The name and telephone number will be listed on the credit report alongside the other account information. Offer to resolve the debt by paying less than the full balance -- a common process called debt settlement. The SmartMoney website reports that credit card companies and debt collectors will often settle accounts for 20 to 75 percent of the balance. Make 20 percent your initial offer and negotiate from there until you have a deal. Don't feel you have to make a deal on the first phone call, and don't agree to pay more than you can afford. Stay with the process until all the delinquent debts are paid.