Debts Settlement Strategy - Strategies For Resolving Old Debts
If you have decided to finally work on debt settlement, congratulations.
It's hard work, but it can be done.
However, if some of your debt involves old debt, take a moment to consider some of the following debt settlement strategies.
First of all, as you begin to tackle some of the old debts that appear on your credit reports, validate the debt.
Debt validation means that you ask the collector to prove that you owe the debt, and for how much.
Since older debts will be less easy to remember and verify, the onus is on the collector.
Write a letter asking for documentation, and keep a copy.
If you receive no response, write another letter stating that you can not be responsible for this unproved debt, and send it by registered mail.
For older debt settlement, check out the statutes of limitations (SOL).
Although different states have different SOLs, it's important to find your state's definition.
For example, most states enforce a 4 to 6 year statute of limitations on debt collection.
In other words, if the original loan company has not collected your debt within that time period, they no longer can.
So, once you determine exactly what your state's statute says, it may be that you no longer have to repay the loan.
However, this does not mean that this bad debt won't continue to appear on your credit report.
Credit bureaus may report on any financial debt for up to 7 years.
If you feel morally obligated to pay back old debts, do so.
However, keep in mind that once you have started a repayment plan, that debt becomes reactivated.
In other words, a debt that may have expired in 6 months, will now remain open and active for another 4-6 years once you start repayment.
Always determine if the current bill collector cited on your credit report is the original or from a collection agency that bought out the debt.
If it is not the original loan company, then as a consumer you have added protection under the Fair Debt Collection Practices Act (FDCPA).
In spite of all of these great hints about settling old debt, it still often pays to contact a creditable debt settlement company that can do all the hard and time consuming work for you.
These companies do not charge a lot, and they have a lot of expertise to help you.
It's hard work, but it can be done.
However, if some of your debt involves old debt, take a moment to consider some of the following debt settlement strategies.
First of all, as you begin to tackle some of the old debts that appear on your credit reports, validate the debt.
Debt validation means that you ask the collector to prove that you owe the debt, and for how much.
Since older debts will be less easy to remember and verify, the onus is on the collector.
Write a letter asking for documentation, and keep a copy.
If you receive no response, write another letter stating that you can not be responsible for this unproved debt, and send it by registered mail.
For older debt settlement, check out the statutes of limitations (SOL).
Although different states have different SOLs, it's important to find your state's definition.
For example, most states enforce a 4 to 6 year statute of limitations on debt collection.
In other words, if the original loan company has not collected your debt within that time period, they no longer can.
So, once you determine exactly what your state's statute says, it may be that you no longer have to repay the loan.
However, this does not mean that this bad debt won't continue to appear on your credit report.
Credit bureaus may report on any financial debt for up to 7 years.
If you feel morally obligated to pay back old debts, do so.
However, keep in mind that once you have started a repayment plan, that debt becomes reactivated.
In other words, a debt that may have expired in 6 months, will now remain open and active for another 4-6 years once you start repayment.
Always determine if the current bill collector cited on your credit report is the original or from a collection agency that bought out the debt.
If it is not the original loan company, then as a consumer you have added protection under the Fair Debt Collection Practices Act (FDCPA).
In spite of all of these great hints about settling old debt, it still often pays to contact a creditable debt settlement company that can do all the hard and time consuming work for you.
These companies do not charge a lot, and they have a lot of expertise to help you.
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