How would you feel if I told you the secrets on eliminating credit card debt? Not just little bit, but 100% of the debt. Did I get you excited? Does it interest you? Are you jumping around? I would be. For those who may not qualify for the whole 100%, don't lose hope. I will cover the technique in another post which I believe virtually every person who has credit card can use to cut their payments in half. With this technique, it doesn't matter how much your debt is, eliminating credit card debt is possible. If you have twenty, thirty or even forty thousand dollars in credit card debt, you can benefit from this technique. So let's get started.
Statute of Limitations on Debt
Maybe long time ago you had a debt and you weren't able to pay back and didn’t know about eliminating credit card debt. After some time of creditors trying to collect, you no longer received any notice. But then you see some company you've never heard of sending you collection letters. Original creditor has written off your debt and sold bad debts to scavengers for the fraction of the original amount. These debt collectors known as scavengers buy groups of outdated debts at incredibly low price and hopes to collect whatever they can which is more than what they paid. They will do whatever it takes to collect. Whether it's ethical or not as long as they can collect they will try. These scavengers are bottom feeders, even lower than regular debt collectors.
However, did you know that when debt is too old you are NOT required to pay back? So you say how old is too old. This depends on your state. Each state has statute of limitations (SOL). Statute of Limitation is a time after an event in which legal proceedings based on that event may be initiated. This system is there as a protective measure for you. It just may be the one thing our government has put in place in the benefit of the consumers. It sure wouldn’t be fair for the creditors to sit around without enforcing collection and after 20-30years of doing nothing all of sudden they come knocking on your door expecting your to cough up the outstanding debt. How about debt collectors coming after you forever, doesn’t that sound unfair? This is why Statute of Limitation is in place eliminating credit card debt.
This doesn’t mean collectors will stop coming after you even after the Statute of Limitation has expired. They don’t care about expiration date. Creditors may even sue you for all that matter. Just because SOL has expired doesn’t mean you can simply ignore any legal notices. You have to appear in court if court requires you to be in court. All you simply have to do is tell them SOL has expired and your case will be dismissed eliminating credit card debt. However, many consumers without this knowledge of SOL will be bullied into paying up the debt when legally they don’t have to. So, it is important every consumers with credit card know what their state’s SOL is. Don’t simply rely on some book or online print. Contact your state and find out what current SOL is because they are subject to change when court decision in regarding limitations on the right to file suit may alter state laws.