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When Paying Your Bills Can Hurt Your Credit
By JLP | April 14, 2006
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I saw the article When Paying Bills Can Hurt Your Credit by Liz Pulliam-Weston a while back and forgot about it until I saw it mentioned by the BudgetingBabe.
There’s something about this article that doesn’t sit well with me. It is almost as if Liz is telling people NOT to pay off their bills (at least the old bills). Personally, my belief is that if YOU are responsible for the bill, then YOU should pay it off, regardless of the consequences. If you don’t pay if off, guess who will? Sure, the company will “write it off.” However, the company must raise the price for everyone else to cover the bad debt.
Of course, the credit scoring system needs to be fixed if it penalizes people who pay off old debts. It should be the other way around: people WITH old debts should be penalized until they are paid off.
Topics: Credit |