Yep, it's that time again. Another round of Ask My Credit Group. This one is one of my favorites, and I'll tell you why.

I really REALLY love it when we get questions from people who have done their homework. People who are taking their credit and budgets seriously.

Most of the questions we get are the "How do I remove all my bad credit" types of questions. We help everybody we can, but it's always a little funner helping the more "Realistic" questions. You can tell Mary and her family has spent a lot of time and energy into repairing some of the mistakes they've made.

"Hi,

Over the last 7 months or so, my husband and I have been working on our credit. We’d love to buy a house this year, but want to make sure we get the best deal we can.

We are down to 2 collection accounts, and both of them are past the statute of limitations for our state. We live in Colorado, and the debts are both near 6 years old and both pretty cheap (under 1200.00 each).

So my question is, should I just ignore them both since they can’t sue me and wait for them to fall of my credit report?

Your feedback is much appreciated.

Sincerely,

Mary F."

Hello Mary,

First of let me congratulate you. Dedicating 7 months to repairing your credit is a big step. Let me also commend you on the homework you’ve obviously done. Dedication and homework is the one way to guarantee success.

Now on to your question.

Based on the information you’ve provided, I’m going to offer another solution. Waiting it out is a possibility. However, the fact that they are past the statute of limitations for Colorado it’s very likely they will settle the debt for pennies on the dollar.

You can even request they remove the trade line from your credit report if you do come to an agreement. They won’t always remove it, but at this stage, it’s definitely worth asking.

Going this route is going to accomplish a few things.

1. You had said you wanted to buy a house this year. Well, you’ve got a year before they fall off naturally.

2. If you negotiate to have it removed, you could be ready to buy that house much sooner.

3. Doing the right thing always feels better.

So, I suggest you give them a call. Be polite, honest and up front. If you negotiate a deal, make sure it’s all in writing and I recommend you use certified mail for all correspondences.

Keep us posted and good luck.