레이블이 Debt Payoff Spreadsheet인 게시물을 표시합니다. 모든 게시물 표시
레이블이 Debt Payoff Spreadsheet인 게시물을 표시합니다. 모든 게시물 표시

2013년 11월 23일 토요일

About 'pay off a debt'|Paying Off Student Loan Debt is a Priority







About 'pay off a debt'|Paying Off Student Loan Debt is a Priority








Credit               cards               are               sexy.

These               tiny               pieces               of               magnetized               plastic               live               quietly               in               your               wallet,               seducing               you               with               a               siren's               song               to               spend,               spend               and               spend               some               more.

Yet,               when               you               have               spent               a               bunch               of               money               you               do               not               have,               you               may               very               well               find               yourself               without               the               money               to               repay.

In               these               cases,               the               bill               defaults               and               usually               sold               to               a               collection               agency.

It               is               at               this               point               that               you               need               to               do               some               strategizing               before               your               credit               record               is               utterly               devastated.

How               old               is               the               debt?


               According               to               the               Fair               Debt               Collection               and               Practices               Act               (FDCPA)               a               bad               or               defaulted               debt               can               only               survive               on               a               consumer's               credit               report               for               7               years               after               the               last               missed               payment.

Sometimes,               some               borrowers               choose               to               let               the               clock               run               out               on               old               debt.

Other               borrowers               find               themselves               in               better               financial               health               after               several               years               and               opt               to               pay               the               debt               in               full.

This               is               where               you               need               to               both               start               and               stop               the               process.

The               age               of               the               debt               matters,               and               the               explanation               about               why               the               age               matters               is               a               little               further               in               this               article.
               Statute               of               Limitations               
               Each               state               has               a               predetermined               number               of               years               that               a               debt               collector               can               legally               pursue               a               borrower               for               any               debt;               both               written               and               oral               in               agreement.

Mind               you,               the               statute               of               limitations               has               no               bearing               on               the               credit               reporting               agencies,-negative               items               are               not               going               anywhere               for               seven               years               no               matter               what.

However,               once               the               statute               of               limitations               for               your               state               runs               out,               paying               off               old               debt               does               more               harm               than               good.
               The               Clock               is               Ticking               
               As               an               example:               Amber               had               a               Visa               card               and               racked               up               $10,000               worth               of               debt               in               a               year               or               two.

While               Amber               was               charging               it               up               on               her               Visa               card,               she               was               also               using               her               store               cards,               gas               cards,               buying               a               new               car               and               Amber               bought               a               house.

Before               she               knew               it,               she               was               up               to               her               eyeballs               in               debt.

For               Amber               to               keep               her               house,               she               had               to               stop               paying               her               Visa               bill.

Naturally,               Visa               is               not               a               fan               of               that               mentality,               but               Amber               did               not               have               a               choice;               so,               after               awhile,               the               Visa               balance               was               placed               in               the               nefarious               hands               of               a               local               collection               agency.

Yet,               Amber               still               could               not               pay.
               Six               years               go               by               
               The               collection               agency               was               still               calling               Amber               and               sending               her               letters.

It               was               around               this               time               that               Amber               received               a               promotion,               and               is               now               able               to               pay               the               debt.

Wait               Amber!

Do               not               pay               that               Visa               bill.

If               you               do,               the               debt               that               was               scheduled               to               "disappear"               from               your               credit               report               in               less               than               a               year               will               now               follow               you               for               an               additional               seven.

How               is               that               possible?

Paying               any               old               debt               resets               the               timer.

Therefore,               an               old               account               set               to               expire               and               drop               off               a               credit               report,               becomes               new               again.

The               poor               repayment               record               of               that               bad               debt               will               follow               Amber               for               seven               more               years.
               However,               if               Amber               found               herself               with               the               money               to               pay               the               bill               within               a               year               from               the               account               being               placed               in               collection,               Amber               should               pay               the               bill.

She               may               even               be               able               to               reconcile               the               debt,               paying               less               than               the               full               balance               of               the               Visa.

This               will               vary               on               a               case-by-case               basis,               but               negotiating               a               settlement               offer               can               be               a               money               saving               alternative               to               penning               a               check               for               the               full               balance               of               a               bad               debt.
               Timing               is               everything...even               when               it               comes               to               debt               
               Timing               is               essential               when               selecting               a               debt               repayment               strategy.

If               the               statute               of               limitations               on               an               account               has               run               out               and               if               the               seven-year               limit               is               inching               every               closer,               do               not               pay               off               old               debt.

However,               if               the               debt               is               still               under               the               statute               of               limitations               and               you               find               yourself               with               the               means               to               repay,               negotiating               a               settlement               is               typically               the               way               to               go.
               More               from               this               Contributor:               
               Collection               Agencies               and               the               Rinse               and               Repeat               Strategy               
               The               5               Most               Common               Credit               Card               Traps               
               Debunking               the               Top               5               Credit               Myths






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