The Worst Thing You Can Do When a Debt Collector Calls

If a collector calls and asks for money, many people think paying off old debt is good right?

This one mistake can:

  • Cost you thousands of dollars,
  • get you SUED!
  • and double or triple the amount of collector calls you get.

If you’re thinking about making a payment to your old debts as a way to save your credit score, you should REALLY think again.

Paying off old debt can actually make things worse

You could end up in a vicious cycle like this:

 paying off old debt vicious cycle

That image makes me smile, but remembering how stressful it used to be to get collection calls makes me mad.

 

Ever heard of the statute of limitations?

Well your creditors know what it is and they are ITCHING to extend it.

The Statute of of limitations is like an expiration date on when they can stop harassing you for the debt.

 

From the time the collection agency gets your account and that collection account goes onto your credit report the clock starts ticking toward the end of the statute of limitations in your state.

Now, some states have less time (lucky Arizona at three years) and others have more (Sorry Ohio at 15 years), but at the end of this time, your creditor cannot sue you for the balance.

 

So if you start paying off old debt, you will restart the clock and the collector can harass you again and sue you again!

The Statute of Limitations is the amount of time a collector can call you to try and collector on the debt.  It is also the amount of time they have to sue you for the debt!

You don’t normally hear about people getting sued for a debt that is 10+ years old (unless you are in Ohio) and now YOU know why…  Statute of limitations baby and you need to check it out before you start spending money you could use for much better things.

Check out this link for more info: http://www.fair-debt-collection.com/statue-limitations.html

 

Great info on that link right?

So how about this situation:

About five years ago, you hit a rough spot and you did what many have.

You were strapped for cash and couldn’t pay all the bills – you had to survive.

Your credit could wait.

Don’t worry, lots of people are right there with you.

 

Now you’re thinking you’d like to buy a house, a car or get married.  Checked your credit lately?  It might not be what you need to get the mortgage, car, etc…

Those old debts are probably still sitting on your credit report and you may be saying to your self, “I want to pay off my old debt!”.  Now, all of a sudden, you’re back in action and you really want to make things right and work to build your credit.

So where do you start?  Most people are thinking about paying off their old debt right?

Not if the expiration in your state is 3 or 4 years you’re not.  In fact, unless you live in Ohio, it might even be unwise to contact those old creditors.  They will only give you a headache and try and get you to pay those old debts off!

Plus if they convince you to make a payment, even if only $10 – IT RESTARTS THE CLOCK for those creditors to sue you.

Don’t waste your money or put yourself in a legal issue by paying off old debt!!

Feeling irritated?  Yup, tell me about it.  Credit collection companies really suck and they are really annoying, but the good news is that they can’t stick around forever.

Before you open yourself up for more agony from these horrible companies, why not take a look at your credit report to see how old those debts are?

What’s the harm?  Why pay off an old debt if they won’t sue you and they have already made their money back on you through interest in the past?

 

Take a look at the Credit Laws Section and see how shocking they all are.  We have so many rights that people just don’t realize and unfortunately they do not take advantage of them!

That’s some crazy knowledge, eh?

So next time you are thinking about paying that old collection account, you might want to reconsider.

You could get a lawsuit thrown at you and you could have used the money for something more important or at least more fun!

 

Need help with Harassing Collector Calls?

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About the Author

Jeremy Maher dealt with harassing collector calls, debts piling up and damaged credit for years. He improved his situation and started helping others.   That leads us to today, where Jeremy has DIY solutions for stopping collection harassment, eliminating debt and improving your credit scores. His clients can improve their situation within the comfort of their own home.

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