Statute of Limitations on Credit Card Debt: The Facts

Major Advantages of Debt Settlement The statute of limitations on a debt varies between 3 and 10 years in most states. This means that creditors (and debt collectors) have a limited period of time in which they are able to sue debtors for their bills. Everyone should know their states statute. This length of time is figured out from your last payment date or last time you used the card.  Lately there is a growing trend toward debt collectors becoming more and more aggressive, buying old debts, and then trying to collect on them, even if the statute of limitations is past. These debt collectors get these accounts for mere pennies and then anything they can get out of you is almost pure profit for them.  The Fair Debt Collections Practices Act was put in place to avoid this happening to people. Some of these collectors lie and say that the statute of limitations starts from the day they bought the account and not the date of the last activity on the account by the creditor.  If by chance you end up in a situation like this do not send in any payments no matter how much the "collectors" harass you, especially if the statute of limitations is past. If you do send money, it will make the delinquency look recent. Make sure to keep checking your credit report so that the old debt is not put on it, especially if the statute of limitations has past. Try to ignore all contact with the collection agency. The Fair Debt Collection Practices Act ensures that there are certain things that they cannot do to attempt to get your money.  When it comes to credit card debt many people ask, themselves how they are even going to begin to pay it back. Well it will take time, maybe a long time and it will take a lot of effort. The first and the most important thing you have to do is stop using your credit cards. You may want to think about getting a consolidation loan if the amount is large. It is best you decide what to do in your situation.  You may want to see a debt counselor who will work for you. They can make a program tailored to fit your needs but you must be the one to follow it. Remember too that you are not the only person in the world to carry a credit card balance.